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Understanding Co-Insurance in Health Insurance

What is Co-Insurance and How Does it Work?

Co-insurance is a cost-sharing arrangement in which you and your health insurance company both pay a portion of your medical expenses. In a co-insurance arrangement, you typically pay a certain percentage of the cost of a medical service, while your insurance company pays the rest. The percentage you pay depends on the specific terms of your insurance policy. For example, if you have a policy with 80/20 co-insurance, your insurance company would pay 80% of the cost of a medical service, while you would pay the remaining 20%. Co-insurance helps to spread the cost of healthcare expenses between you and your insurance company, reducing the overall cost of your insurance coverage. It is important to understand the terms of your co-insurance arrangement, so you can budget for your out-of-pocket expenses and make informed decisions about your medical care.