What does "co-insurance" generally refer to in health insurance plans?

Co-insurance typically refers to the percentage of healthcare costs that an insured individual is responsible for after they have met their deductible. In many health insurance plans, once the policyholder has paid their deductible—a fixed amount they must pay for covered services before their insurance starts to contribute—they are then required to pay a certain percentage of the remaining costs for services until they reach their out-of-pocket maximum. This arrangement helps share the cost of care between the insurer and the insured, reflecting the principle of shared financial responsibility in healthcare.

For example, if a policy has a co-insurance rate of 20%, after meeting the deductible, the policyholder would pay 20% of eligible medical costs, while the insurance company would cover the remaining 80%. This structure encourages insured individuals to engage thoughtfully with their healthcare choices and helps insurers manage risk and costs effectively.