Co-insurance

Co-insurance in health insurance is an agreement between the policyholder and the insurance company which refers to a fixed percentage of the amount that the policyholder has to pay after the deductible has been met. The insurer covers the remaining percentage of the costs.

For example, if a policy has a 20% co-insurance fixed and the total medical expense is ₹1 Lakh, the policyholder would be responsible for paying ₹20K (20% of the total cost), while the insurer would cover the remaining ₹80K.

Co-insurance helps reduce the overall cost of premiums. However, it's important to note that co-insurance can also result in higher out-of-pocket costs for the policyholder, especially if they require frequent medical care or have high medical expenses. It's important to review and understand the co-insurance terms and conditions before selecting a health insurance plan.

It also sounds similar to the co-payment in health insurance but Co-payment doesn't count toward the deductible.