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Deductible and Coinsurance Information

Monday, April 18, 2011 @ 09:04 AM  posted by jbuytaert

There are many different types of medical policies available to us today.  As we select a plan or review our explanation of benefits (EOB) from our lasted physician visit, it is important to understand the different between a Deductible and a Coinsurance.

 A Deductible is the amount of money which the insured party must pay before the insurance policy’s coverage begins. 

Coinsurance is the percentage that the insured pays after the insurance policy’s deductible has been met.

For example, you have selected an 80/20 coverage plan with a $300 deductible. This will mean that you, the insured, are responsible for 100% of the first $300 in accrued medical bills.  Once you have exceeded $300 in accrued medical bills then the insurance will begin to cover the additional medical bills at 80%.  You would be responsible for the remaining 20%.

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