What does the term "co-insurance" refer to in health insurance?

Co-insurance refers to the percentage of healthcare costs that the insured is required to pay after the deductible has been satisfied. It is a cost-sharing arrangement between the insurance company and the policyholder. For example, if a health insurance plan has a co-insurance rate of 20%, the insured will pay 20% of the eligible healthcare costs, while the insurance company will cover the remaining 80%. This percentage continues until the insured reaches their out-of-pocket maximum or limit.

The other terms provided in the options represent different financial responsibilities in health insurance. A fixed amount that a patient pays for each healthcare service is known as a copayment, while the total payment required before insurance coverage begins is referred to as a deductible. Lastly, payments made directly by an insurance company to a healthcare provider are classified as direct payments or reimbursements, but do not define co-insurance. This understanding of co-insurance helps individuals navigate their health insurance plans and budget for potential medical expenses.