In which type of insurance plan do members pay partly for covered services through arrangements based on a specific percentage?

Coinsurance is a type of insurance arrangement where members are responsible for paying a specific percentage of the costs for covered medical services after meeting their deductible. For example, if a health service costs $100 and the coinsurance rate is 20%, the member would pay $20, and the insurance company would cover the remaining $80. This percentage-based cost-sharing helps manage healthcare expenses and encourages members to utilize services judiciously, as they have a financial stake in the expenses incurred.

In contrast, co-payment involves a fixed amount that members pay for healthcare services regardless of the total service cost. A deductible is the amount the member must pay out-of-pocket before the insurance plan starts to cover costs. A premium refers to the regular payment made to maintain an insurance policy, independent of the services rendered. Thus, coinsurance distinctly involves a percentage-based payment structure, highlighting its function within the overall insurance framework.