This video explains the concept of coinsurance in health insurance and its origin:
- The prefix “C-O” seen before words like coworker or cooperate comes from a Latin word meaning “with” or “together.”, so “Co-insurance” literally means “with the insurance company.”
- After you’ve paid your deductible, coinsurance refers to the portion of healthcare costs that you share with your insurance company, typically with the insurance company covering the larger percentage.
- In the video, Luke provides this example: If your insurance plan has 25% coinsurance, it means that after meeting your deductible, you pay 25% of healthcare costs, and your insurance company pays the remaining 75% until you reach your out-of-pocket maximum.
- In an example scenario where you’ve already met your deductible but not your out-of-pocket maximum, and you have a $1,000 surgery, with a 25% coinsurance (you paying 25% and insurance covering 75%), you would pay $250, while your insurance would pay $750 for the surgery.
