Coinsurance

An arrangement in a health or dental insurance plan where the insured person(s) and the insurance company share the cost of the items covered.

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The insured person usually pays a set percentage.

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Most common is an 80/20 split (e.g. 20% paid by you and 80% paid by the insurance company). By making the insured person(s) participate in sharing of claim costs, coinsurance helps to ensure the insured person(s) are more aware cost.

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In theory, this helps mitigate frivolous or unnecessary claiming by incentivizing the insured person(s) to weigh the costs before incurring a claimable expense, and engage in less risky behavior.