Which statement correctly describes the relationship between deductible and coinsurance?

Which statement correctly describes the relationship between deductible and coinsurance?

• A. Coinsurance is paid before deductible
• B. Deductible is the amount you pay before coinsurance starts
• C. They are the same thing
• D. Deductible applies after the out-of-pocket maximum

Answer: (B)

Deductible comes first in most plans. The amount you must pay out-of-pocket for covered services before your insurer starts sharing costs is the deductible. Once you’ve met that amount, you begin paying the coinsurance—typically a fixed percentage of the covered charges—while the insurer pays the rest. This continues until you reach the out-of-pocket maximum, at which point the insurer covers most or all further covered costs. The deductible is not the same as coinsurance, and it isn’t applied after the out-of-pocket maximum. It also counts toward the out-of-pocket maximum, helping cap your total yearly costs. So the statement that the deductible is the amount you pay before coinsurance starts is correct.

Deductible comes first in most plans. The amount you must pay out-of-pocket for covered services before your insurer starts sharing costs is the deductible. Once you’ve met that amount, you begin paying the coinsurance—typically a fixed percentage of the covered charges—while the insurer pays the rest. This continues until you reach the out-of-pocket maximum, at which point the insurer covers most or all further covered costs.

The deductible is not the same as coinsurance, and it isn’t applied after the out-of-pocket maximum. It also counts toward the out-of-pocket maximum, helping cap your total yearly costs. So the statement that the deductible is the amount you pay before coinsurance starts is correct.