How is co-insurance typically calculated?

Co-insurance is typically calculated as a percentage of the cost of a medical service or treatment. In this arrangement, after a patient has met their deductible, they are responsible for a certain percentage of the remaining costs associated with their healthcare. For example, if a health insurance plan specifies 20% co-insurance, and a medical bill is $200, the patient would pay $40 (20% of $200), while the insurance company would cover the remaining $160.

This method of calculation incentivizes patients to be more mindful of their healthcare spending, as their out-of-pocket expenses will vary based on the total cost of the services they receive. Other patterns mentioned, like a fixed dollar amount or flat rates, do not represent the variable nature of co-insurance, which adjusts directly in relation to the price of the services rendered. The annual deductible amount also pertains to how much a patient must pay out-of-pocket before insurance kicks in, but does not relate to the co-insurance calculation itself.