Coinsurance is the portion of medical costs that are shared by both the Insured (the patient) and the Insurer. For example, if you have an 80% to $5,000 coinsurance:

~ The Insurer is responsible for 80% of the next $5,000 in covered medical expenses.

~ The Insured is responsible for 20% of that same $5,000 in covered medical expenses.

* In the above mentioned policy with $1,000 deductible and 80% coinsurance to $5,000: If a covered event occurred that had a total cost of $10,000, the insured would be responsible for the first $1,000 (deductible). Of the next $5,000 in covered expenses, the insured would pay another $1,000 (coinsurance). After deductibles and coinsurance are satisfied, Insurance Companies pay 100% of all other covered expenses. For this example the Insured would pay $2,000 and the Insurer would pay $8,000.