A common feature of most health plans is something called co‐insurance. What’s that?
Let’s say you have a calendar year deductible of $1,500. After that, your insurer probably pays 80% of the next $10,000 of charges. You pay 20%.
Consider just one example of why co‐insurance makes sense. The cost of an MRI can range from a high of about $4,500 to a low of just $600. With 20% cost‐sharing, which would you rather pay; $900 or $120?
When a third party insurer pays the bills, it’s easy to ignore the cost of care. Co‐insurance gives us a reason to ask one question missing from the purchase of health care: “What’s this going to cost?”