ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This amount is generally offered as a fixed percentage. It is similar to the copayment provision under health insurance. For example, if your coinsurance is 20%, then you will be liable to bear 20% of the treatment cost while the rest 80% will be borne by your insurance provider.

Detailed explanation-2: -for a doctor’s office visit is $100. Your copayment for a doctor visit is $20. The amount you pay for covered health care services before your insurance plan starts to pay. With a $2, 000 deductible, for example, you pay the first $2, 000 of covered services yourself.

Detailed explanation-3: -What is co-payment in health insurance? Co-pay in health insurance is a clause, wherein the insured agrees to bear a specific portion of the incurred medical expenses. It is usually a fixed percentage of the claim amount, which the policyholder pays at the time of a claim.

Detailed explanation-4: -For instance, if the insured individual bears a medical bill of Rs. 50, 000 and has an option of 10% co-payment, the insured will have to bear Rs. 5, 000 from their own pocket while their health insurance company will pay the remaining Rs. 45, 000.