What does John pay after meeting his deductible when his insurance covers 80% of the remainder?

What does John pay after meeting his deductible when his insurance covers 80% of the remainder?

• A. Co-pay
• B. Deductible
• C. Out of pocket max
• D. Co-insurance

Answer: (D)

When John meets his deductible, he moves into a stage where his health insurance begins to share the costs of his medical expenses. In this case, the insurance covers 80% of any additional costs incurred after the deductible has been met. The remaining 20% is what John is responsible for. This 20% that John pays is referred to as co-insurance. Co-insurance is a cost-sharing arrangement where the insured pays a certain percentage of the cost for medical services after the deductible is fulfilled. Co-payment, on the other hand, is a fixed fee that John would pay for specific services regardless of whether the deductible has been met. The deductible itself is the amount John pays out-of-pocket before the insurance starts covering costs. The out-of-pocket maximum is the maximum amount John would pay for covered healthcare in a policy period, after which the insurance would cover 100% of costs for the rest of that period. In summary, since John is paying 20% of the remaining costs after his deductible is met, this amount is considered co-insurance, making it the correct choice in this scenario.

When John meets his deductible, he moves into a stage where his health insurance begins to share the costs of his medical expenses. In this case, the insurance covers 80% of any additional costs incurred after the deductible has been met. The remaining 20% is what John is responsible for.

This 20% that John pays is referred to as co-insurance. Co-insurance is a cost-sharing arrangement where the insured pays a certain percentage of the cost for medical services after the deductible is fulfilled.

Co-payment, on the other hand, is a fixed fee that John would pay for specific services regardless of whether the deductible has been met. The deductible itself is the amount John pays out-of-pocket before the insurance starts covering costs. The out-of-pocket maximum is the maximum amount John would pay for covered healthcare in a policy period, after which the insurance would cover 100% of costs for the rest of that period.

In summary, since John is paying 20% of the remaining costs after his deductible is met, this amount is considered co-insurance, making it the correct choice in this scenario.