Co-Insurance

AAA

DEFINITION of 'Co-Insurance'

A co-sharing agreement between the insured and the insurer under a health insurance policy which provides that the insured will cover a set percentage of the covered costs after the deductible has been paid. Similar to co-pay insurance plans except co-pays require the insured to pay a set dollar amount at the time the service is rendered.

INVESTOPEDIA EXPLAINS 'Co-Insurance'

For example, an 80/20 coinsurance plan with a $300 deductible requires the insured to pay 20% of the covered costs after the deductible as been paid, while the insurance company will be liable for the remaining 80%. Today, with the growing cost of prescription drugs and medical expenses, more and more employers have switched from co-pay plans to coinsurance plans to reduce employee-benefit costs.

RELATED TERMS
  1. College Of Insurance

    One of several institutions of higher learning that teach courses ...
  2. Collateral Source Rule

    A common law rule of evidence pertaining to punitive or other ...
  3. Agreed Amount Clause

    A property insurance provision in which the insurer agrees to ...
  4. Aggregate Product Liability Limit

    The maximum sum of money that an insurance company will pay during ...
  5. Co-pay

    A type of insurance policy where the insured pays a specified ...
  6. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
RELATED FAQS
  1. Does Medicare provide assistance for patients unable to perform Activities of Daily ...

    Medicare can help those unable to perform the activities of daily living (ADL), although the relationship between ADL and ... Read Full Answer >>
  2. What are examples of the largest companies in the insurance sector?

    In the United States, the two largest life insurance companies, in terms of assets as of 2015, are Metlife and Prudential ... Read Full Answer >>
  3. Why do growth investors buy insurance stocks?

    Growth investors buy insurance stocks because as populations age and become more prosperous, there is increased demand for ... Read Full Answer >>
  4. How does the Affordable Care Act affect moral hazard in the health insurance industry?

    To see how the Patient Protection and Affordable Care Act, or "Obamacare," affects moral hazard in the health insurance industry, ... Read Full Answer >>
  5. What is fiduciary liability insurance, and what are its benefits?

    Under the Employee Retirement Income Security Act (ERISA), any individual who manages a employee benefit or pension plan ... Read Full Answer >>
  6. How reliable or accurate is marginal analysis?

    Marginal analysis is designed to show how economic reasoning allows actors to accomplish more by understanding limits on ... Read Full Answer >>
Related Articles
  1. Insurance

    What Does Medicare Cover?

    Don't assume you're insured. Find out what you can expect from this healthcare program.
  2. Home & Auto

    Taking The Surprise Out Of Long-Term Care

    Don't be caught unprepared - find out what to look for in LTC insurance policies.
  3. Home & Auto

    Long-Term Care Insurance: Who Needs It?

    No one is immune to the possibility of one day needing long-term care - and the costs can deplete a life savings.
  4. Insurance

    Life Insurance: Putting A Price On Peace Of Mind

    Would your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected.
  5. Insurance

    Explaining Insurance

    Insurance is a form of contract between an individual and an insurance company that spreads risk in exchange for premium payments.
  6. Insurance

    Top 10 Travel Health Insurance Companies

    Before you take a long trip abroad – or move there – make sure you have enough health coverage. That goes double if you go in for "hazardous sports."
  7. Stock Analysis

    How UnitedHealth Group Makes its Money

    Here's how UnitedHealth Group, poised to grow even more, rakes it in.
  8. Insurance

    Don't Lose Your Wealth Due To Healthcare Costs

    This article will highlight the use of an ILIT type of trust to protect wealth in the case of serious illness and transfer wealth in the event of death.
  9. Insurance

    Is My Health Insurance Good Abroad?

    Which emergencies will your health insurance cover (or not cover) if you get sick in a foreign country? Here's how to protect yourself.
  10. Economics

    How Big Data Has Changed Insurance

    No longer confined to technology, big data has become integral to providing solutions to the insurance industry's long standing challenges.

You May Also Like

Hot Definitions
  1. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  2. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  3. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  4. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  5. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
Trading Center