15 Fascinating Things You Need to Know About Your Insurance

The difference between a copay and coinsurance

Copays and coinsurance are other terms that confused people in the Policygenius survey. While 83 percent of survey respondents said they knew what copays are, only 52 percent correctly defined them. People weren’t quite so confident about coinsurance, with only 47 percent saying they were confident they understood the term and a mere 22 percent got the definition right.

You’re most likely to see copayments and coinsurance on health insurance policies, and they are both out-of-pocket costs you pay. The only difference is that a copay is a flat amount while coinsurance is a percentage of the total bill.

For example, your policy may have a $35 copay required for each doctor visit, or you may be charged 20 percent coinsurance for mental health services. Note: These are amounts charged after you meet your deductible.