In a policy with a deductible and coinsurance, the first payment by the insured is typically the:

In a policy with a deductible and coinsurance, the first payment by the insured is typically the:

• A. Copayment
• B. Deductible
• C. Premium
• D. Coinsurance

Answer: (B)

The main idea is how cost-sharing works when a plan has both a deductible and coinsurance. The deductible is the amount you must pay out-of-pocket before the insurer starts sharing costs for covered services. So, the first payment you make in such a plan is typically the deductible. After you’ve satisfied the deductible, coinsurance applies, meaning you pay a specified percentage of the remaining covered charges while the insurer pays the rest, until you reach the out-of-pocket maximum. Premiums, on the other hand, are regular payments to keep the policy active and aren’t tied to a specific claim. Copayments are fixed amounts for certain services, but in a deductible/coinsurance design the initial out-of-pocket payment is the deductible.

The main idea is how cost-sharing works when a plan has both a deductible and coinsurance. The deductible is the amount you must pay out-of-pocket before the insurer starts sharing costs for covered services. So, the first payment you make in such a plan is typically the deductible. After you’ve satisfied the deductible, coinsurance applies, meaning you pay a specified percentage of the remaining covered charges while the insurer pays the rest, until you reach the out-of-pocket maximum. Premiums, on the other hand, are regular payments to keep the policy active and aren’t tied to a specific claim. Copayments are fixed amounts for certain services, but in a deductible/coinsurance design the initial out-of-pocket payment is the deductible.