insurance

5 essential facts about health insurance

Copayment and coinsurance are not the same
Copayment and coinsurance are not the same © gwolters/Shutterstock.com

While copayments and coinsurance are both types of cost-sharing between the consumer and the insurance company, they are two distinct types of payments, notes Michelle Katz, a nurse and the author of "Healthcare for Less" and "101 Health Insurance Tips."

In a copayment, also known as copay, the patient pays a specific flat dollar amount to the provider, usually for each service or treatment, such as $25 for a checkup.

Coinsurance, on the other hand, is a percentage of costs that a patient must pay after the deductible is met. "For example, you may have a deductible of $250 before insurance will cover 80 percent of charges, leaving you responsible for the other 20 percent -- known as coinsurance," Katz explains.

Compare health insurance costs to find the plan best for you.

advertisement

Show Bankrate's community sharing policy
          Connect with us

Compare multiple quotes in just 6 minutes

Get competing rates from top companies including:
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jay MacDonald

Fall maintenance for Obamacare

Submit Obamacare proof of income documents by Sept. 30, but beware of HealthCare.gov fall maintenance.  ... Read more

advertisement
Partner Center
advertisement

Connect with us