What does "level of coverage" refer to in health insurance?

The concept of "level of coverage" in health insurance primarily refers to the percentage of healthcare costs that a health plan is responsible for covering on behalf of the insured individual. This defines how much financial responsibility falls on the insurer compared to the insured when accessing medical services.

For example, if a plan has an 80% level of coverage, it means that the insurer will cover 80% of the medical expenses, leaving the policyholder responsible for the remaining 20%. This determination of cost-sharing is a critical factor for individuals when selecting a health insurance plan, as it directly impacts out-of-pocket expenses and overall affordability of care.

Other options present concepts that, while related to health insurance, do not accurately define the term "level of coverage." For instance, the total number of services covered is more about the scope of the plan rather than the financial arrangement of cost-sharing. The frequency of benefits and the duration of coverage before benefits begin refer to different aspects of health insurance, such as how often one can access benefits and the waiting period for those benefits to become available, respectively. Thus, focusing on the percentage of costs covered provides a clear understanding of the level of coverage.