What does the term 'coinsurance' refer to in health insurance?

The term 'coinsurance' specifically refers to the shared percentage of costs that policyholders are responsible for after they have met their deductible. In a typical health insurance plan, after the insured has fulfilled their deductible amount, they and the insurance company each pay a certain percentage of covered healthcare costs. For example, in a plan with 80/20 coinsurance, the insurance covers 80% of the costs, and the insured pays the remaining 20%. This cost-sharing mechanism helps to align the financial responsibilities of both the insurer and the insured, promoting responsible utilization of healthcare services.

The other choices do not accurately describe what coinsurance represents. A fixed fee for every service relates more to copayments, which involve set dollar amounts rather than percentages. The total amount of the deductible represents the amount that must be paid by the policyholder before the insurance starts covering expenses, which is distinct from coinsurance. An insurance premium is the regular payment made to maintain an insurance policy and is unrelated to the concept of cost-sharing described by coinsurance.