Which statement correctly distinguishes deductible and coinsurance?

Which statement correctly distinguishes deductible and coinsurance?

• A. Coinsurance is the amount you pay before coverage starts; Deductible is the percentage you pay after deductible
• B. Deductible is the amount you pay before coverage starts; Coinsurance is the percentage you pay after deductible
• C. They are the same
• D. Premiums are the deductible

Answer: (B)

Deductible represents the amount you pay out of pocket before your insurance starts sharing costs, while coinsurance is the share of costs you pay after you’ve met the deductible, shown as a percentage. For example, with a $1,000 deductible and 20% coinsurance on a $5,000 bill, you’d pay the first $1,000, then 20% of the remaining $4,000 ($800) while the insurer covers the rest ($3,200). Premiums are separate ongoing payments to maintain coverage and are not the deductible. So the statement that correctly distinguishes them is that the deductible is the amount you pay before coverage starts, and coinsurance is the percentage you pay after deductible.

Deductible represents the amount you pay out of pocket before your insurance starts sharing costs, while coinsurance is the share of costs you pay after you’ve met the deductible, shown as a percentage. For example, with a $1,000 deductible and 20% coinsurance on a $5,000 bill, you’d pay the first $1,000, then 20% of the remaining $4,000 ($800) while the insurer covers the rest ($3,200). Premiums are separate ongoing payments to maintain coverage and are not the deductible. So the statement that correctly distinguishes them is that the deductible is the amount you pay before coverage starts, and coinsurance is the percentage you pay after deductible.