How is coinsurance defined?

Coinsurance is defined as a percentage of the total cost of a healthcare service that the patient is responsible for paying after meeting their deductible. This means that once the patient has paid their deductible, they will share the cost of any additional healthcare services with their insurance company. For example, if a patient's coinsurance rate is 20%, they will pay 20% of the costs for covered services, while the insurance will cover the remaining 80%.

This structure is designed to encourage patients to be more cost-conscious about their healthcare choices, as they will directly feel the impact of the costs. It also shares the financial risk between the patient and the insurer. The other options describe different aspects of healthcare payment systems: a fixed payment at the time of service refers to copayments, while total costs from providers represent billed charges, and flat fees typically relate to bundled payment models.