After you meet your deductible, you will typically pay 20-30% of costs until you reach your max. Which cost-sharing arrangement is this?

• A. Premium
• B. Coinsurance
• C. Copay
• D. Deductible

Answer: (B)

Coinsurance is the cost-sharing arrangement described. After you’ve met your deductible, you share the cost of services with the insurer as a percentage, typically around 20–30%, until you reach your out-of-pocket maximum. This means you pay a portion of the bill and the insurer pays the rest, not a fixed amount per visit. This differs from a copay, which is a set dollar amount you pay for a service regardless of the total bill. It also differs from a deductible, which is the amount you must pay out of pocket before the insurer starts sharing costs. Premiums, on the other hand, are regular monthly payments to maintain the plan and aren’t part of per-service cost sharing. For example, if a service costs $1,000 after the deductible is met and your coinsurance is 20%, you’d pay $200 and the insurer would pay $800, up to the out-of-pocket maximum.