PSI Ohio Insurance Practice Exam 2025 - Free Ohio Insurance Practice Questions and Study Guide

Question: 1 / 400

What is the key difference between copayment and coinsurance?

Copayment is based on a percentage

Coinsurance is a fixed amount paid

Copayment is a set dollar amount; coinsurance is a percentage

The key difference between copayment and coinsurance lies in their structures for cost-sharing in health insurance. A copayment is a fixed dollar amount that a policyholder pays for a specific service, such as a doctor’s visit or a prescription drug. For example, a plan might require a $20 copayment for each office visit, meaning the insured pays that set amount regardless of the total charge for the visit.

On the other hand, coinsurance is a percentage of the total cost for a service that the insured is required to pay after meeting any deductible. For instance, if an individual has a health care bill of $100 and their coinsurance rate is 20%, they would pay $20, which is 20% of the total cost.

Understanding these differences is crucial because it affects how much individuals will ultimately pay for healthcare services and helps them budget for medical expenses accordingly.

Get further explanation with Examzify DeepDiveBeta

There is no difference

Next Question

Report this question

Download PSI Ohio Insurance Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy