Illinois Health Insurance Practice Exam 2025 – All-in-One Guide to Master Your Health Insurance Certification!

Question: 1 / 400

Define ‘coinsurance’ in health insurance terms.

The flat fee paid for specific services

The percentage of costs the insured pays after the deductible is met

Coinsurance is defined as the percentage of costs that the insured pays for covered healthcare services after they have met their deductible. Once the policyholder's deductible is satisfied, the insurer and the insured share the remaining healthcare costs according to a predetermined ratio. For instance, if a health plan includes a 20% coinsurance clause, the insured person would be responsible for 20% of the costs of the services rendered, while the insurance company would cover the remaining 80%.

This arrangement encourages policyholders to be mindful of their healthcare expenses, as they will have a financial responsibility in the form of coinsurance after their deductible is paid. Understanding how coinsurance works can help individuals better manage their health care costs and financial planning when seeking medical services.

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The yearly maximum out-of-pocket expense for the insured

The total cost covered by the insurance before hospitalization

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