Which term describes the situation when an individual is required to pay for part of their medical expenses after meeting a deductible?

The situation where an individual is required to pay for part of their medical expenses after meeting a deductible is referred to as coinsurance. This term specifically identifies the shared payment structure wherein, after the deductible has been satisfied, the insured party still needs to contribute a percentage of the costs for services received. For example, if the coinsurance is set at 20%, the individual pays 20% of the costs for their medical care, while the insurance company covers the remaining 80%.

This concept is essential in understanding how healthcare costs are managed and shared between the insurer and the insured, rather than the individual being solely responsible for full expenses after the deductible. In contrast, a deductible is the amount that must be paid out-of-pocket before the insurance kicks in, an out-of-pocket maximum is the total amount an individual will have to pay for covered services in a policy period, and a premium is the amount paid periodically to maintain the insurance policy itself. Each of these terms relates to different aspects of health insurance costs, making coinsurance the correct term for this specific financial responsibility.