Business / Taxes / Coinsurance: When your healthcare insurance has a coinsurance provision, you and your insurer divide the responsibility for paying doctor and hospital bills by splitting the costs on a percentage basis. With an 80/20 coinsurance split, for example, your insurer would pay 80%, or $80 of a $100 medical bill, and you would pay 20%, or $20. Some policies set a cap on your out-of-pocket expenses, so that the insurance company covers 95% to 100% of the cost once you have paid the specified amount. Coinsurance may also apply when you buy insurance on your home or other real estate. In that case, insurers may require you to insure at least a minimum percentage of your property’s value — usually about 80% — and may reduce what they will cover if you file a claim but have failed to meet the coinsurance requirement. Coinsurance also describes a situation in which two insurers split the risk of providing coverage, often in cases when the dollar amount of the potential claims is larger than a single insurer is willing to handle. This type of coinsurance is also called reinsurance.

Coinsurance Clause

Business / Real Estate / Coinsurance Clause: A clause in insurance policies covering real property that requires the policyholder to maintain fire insurance coverage generally equal to at least 80 percent of the propertys actual replacement cost MORE

Coinsurance Effect

Business / Finance / Coinsurance Effect: Economic indicators that give an indication of the status of the economy. MORE


Business / Taxes / Fee-For-Service: When you’re covered by fee-for-service health insurance, you pay your medical bills and file a claim for reimbursement from your insurance company. Most fee-for-service plans pay a percentage — of MORE