Co-insurance is defined as

• A. An agreement for cost-sharing between the insurer and the insured
• B. A fixed co-pay per prescription
• C. The deductible portion
• D. The price of the medication before discounts

Answer: (A)

Co-insurance is a cost-sharing arrangement between the insured and the insurer. After any deductible has been met, the insured pays a percentage of covered expenses and the insurer pays the remainder. This differs from a fixed co-pay, which is a set amount paid each time a service or prescription is received, regardless of the total cost. It’s also not the deductible portion, which is the amount you must pay out of pocket before insurance starts covering. And it isn’t the price of the medication before discounts, which would just be the drug’s list price.