In health insurance, what does 'coinsurance' mean?

Coinsurance refers to a cost-sharing arrangement between the insured and the insurer, where the insured is responsible for paying a specific percentage of the covered healthcare expenses after the deductible has been met. For example, if an insurance plan has a coinsurance provision of 20%, the insured pays 20% of the costs for a covered medical service, while the insurance company covers the remaining 80%. This structure incentivizes insured individuals to utilize healthcare services judiciously since they have a financial stake in the costs of their care.

This arrangement differs from other healthcare payment models. For instance, a fixed fee for doctor visits describes a copayment rather than coinsurance, which varies based on the cost of services. A full payment requirement before coverage starts refers to a deductible; coinsurance only comes into play once that deductible is satisfied. Discounts for healthy lifestyle choices pertain to wellness incentives and are unrelated to the concept of cost-sharing. Thus, the definition of coinsurance as a percentage payment aligns perfectly with option C.