What percentage of covered costs does an insurance company typically pay through co-insurance after the deductible is met?

The correct answer indicates that after the deductible is met, an insurance company typically pays between 80-90% of covered costs through co-insurance. This percentage reflects a common structure in many health insurance plans where, following the initial deductible payment, the insurer shares a significant portion of the costs with the policyholder.

For example, if you have a plan with an 80/20 co-insurance split, after reaching your deductible, the insurance company pays 80% of the eligible medical expenses, while you are responsible for the remaining 20%. This arrangement is designed to encourage cost-sharing, so while the insurance company covers the majority of the expenses, it also requires the insured party to participate financially, which can help mitigate excessive use of healthcare services.

Plans may vary, and specific percentages will depend on the insurance provider and policy terms, but the 80-90% range is a typical industry norm for many standard plans. Understanding co-insurance is critical for budgeting for healthcare expenses, as it affects out-of-pocket costs once the deductible is satisfied.