What does a coinsurance of 80% indicate?

A coinsurance of 80% indicates that the insurance will pay for 80% of the costs associated with covered services. This means that after any applicable deductibles are met, the insurance company takes on the responsibility for the majority of the expenses, while the patient is responsible for the remaining 20%. This type of arrangement is common in healthcare plans and ensures that both the insurer and the insured share the costs of medical or dental treatment.

This understanding reflects the way many insurance plans divide costs and outlines the patient’s obligations in terms of out-of-pocket expenses. The division of costs can impact the patient's financial responsibilities and may influence their decision-making regarding healthcare services.