What is meant by "coinsurance" in health insurance?

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Coinsurance refers to the arrangement in health insurance where, after the insured individual has met their deductible, they are responsible for paying a certain percentage of the costs for covered health services. This percentage is agreed upon in the policy terms, meaning that not all costs are borne by the insurance company. For example, if the coinsurance rate is 20%, the insured will pay 20% of the costs while the insurer pays the remaining 80%. This structure encourages individuals to be more mindful of the costs associated with their healthcare while also sharing the financial risk between them and the insurer.

The other options do not accurately represent coinsurance. A flat fee for health services is more representative of copayments, which is a different concept in health insurance. The total premium paid refers to the amount paid for the entire insurance coverage regardless of usage, which does not relate to the coinsurance model. Lastly, specific co-payment arrangements for medications fall under different cost-sharing methodologies and are not categorized as coinsurance. Thus, the definition of coinsurance in health insurance specifically aligns with option B.

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