Which term describes paying a fixed percentage of charges after the deductible is met?

• A. Deductible
• B. Primary Insurance
• C. Medicare
• D. Coinsurance

Answer: (D)

Coinsurance is the cost-sharing method described when you pay a fixed percentage of allowed charges after the deductible is satisfied. Once you’ve met your deductible, you and the insurer split subsequent costs by a set percentage. For example, with 20% coinsurance on a $100 service, you’d pay $20 and the insurer would cover $80, assuming the charge is allowed. The exact percentage varies by plan. This differs from a deductible, which is the upfront amount you pay before coverage begins, and from a copayment, which is a fixed dollar amount per service. Primary insurance and Medicare describe who pays, not the specific cost-sharing arrangement.