How Deductibles, Coinsurance, Copays & Premiums Work | What is the Difference Between Them? | Aetna (2024)

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How Deductibles, Coinsurance, Copays & Premiums Work | What is the Difference Between Them? | Aetna (2024)

FAQs

What is copay vs deductible vs coinsurance vs premium? ›

Key Takeaways

A copay is a set rate you pay for prescriptions, doctor visits, and other types of care. Coinsurance is the percentage of costs you pay after you've met your deductible. A deductible is the set amount you pay for medical services and prescriptions before your coinsurance kicks in fully.

What is the difference between a premium deductible and coinsurance? ›

A deductible is the amount you pay for coverage services before your health plan kicks in. After you meet your deductible, you pay a percentage of health care expenses known as coinsurance. It's like when friends in a carpool cover a portion of the gas, and you, the driver, also pay a portion.

Do you pay coinsurance before or after deductible? ›

The percentage of costs of a covered health care service you pay (20%, for example) after you've paid your deductible.

What is the difference between deductibles and a copay? ›

Key takeaways. A deductible is the set amount of money you pay out of pocket for covered services per plan year before your insurance starts to share costs. A copay is also a set amount of money, but it's a fixed fee attached to certain covered services.

Do you pay both deductible and coinsurance? ›

You pay the coinsurance plus any deductibles you owe. If you've paid your deductible: you pay 20% of $100, or $20. The insurance company pays the rest.

Is coinsurance what you pay or what insurance pays? ›

Coinsurance is a portion of the medical cost you pay after your deductible has been met. Coinsurance is a way of saying that you and your insurance carrier each pay a share of eligible costs that add up to 100 percent. The higher your coinsurance percentage, the higher your share of the cost is.

How do copays and deductibles work? ›

A copay is a fixed amount that is paid at the time you receive medical services or get a prescription filled. In contrast, the deductible is the amount you're required to pay before the health insurance starts to cover defined benefits.

How do copays work? ›

A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible. The maximum amount a plan will pay for a covered health care service. May also be called “eligible expense,” “payment allowance,” or “negotiated rate.”

Why is copay better than coinsurance? ›

Copays are fixed amounts for a certain type of service (like a specialist visit, doctor's office visits, prescription drugs, or a trip to the emergency room), while coinsurance is a percentage of the total medical costs. Your copay is also typically paid every time you see a provider or fill a prescription.

Does Medicare cover 100% of hospital bills? ›

Medicare doesn't typically cover 100% of your medical costs. Like most health insurance, Medicare generally comes with out-of-pocket costs including copayments, coinsurance, and deductibles. As you'll learn in this article, Original Medicare (Part A and Part B) costs can really add up.

Why am I paying coinsurance after deductible? ›

Coinsurance is the amount you pay for covered health care after you meet your deductible. This amount is a percentage of the total cost of care—for example, 20%—and your Blue Cross plan covers the rest.

Do you have to pay coinsurance if you pay a copay? ›

It might seem like you're being asked to pay both a copay and coinsurance for the same hospital stay. But, you're really paying a copay for the healthcare provider's services, and coinsurance for the hospital's services, which are billed separately.

Who is ultimately responsible for paying a medical bill? ›

Regardless of insurance coverage, patients are ultimately responsible for payment of their medical bills.

Do prescriptions count towards the deductible? ›

Prescriptions typically count toward the deductible as long as they are covered under your plan. Your copay for a prescription may count toward the deductible, depending on your plan. Your health insurance agent can help you determine what type of deductible you have and which prescriptions your plan might cover.

Do you still pay copay after deductible? ›

After your deductible is met, you will still need to pay other fees such as co-payments. For instance, if your doctor has a co-payment of $30 per doctor visit, you will still need to pay this co-payment even after your deductible for insurance is met.

What does 80% coinsurance mean? ›

Under the terms of an 80/20 coinsurance plan, the insured is billed for 20% of medical costs, while the insurer pays the remaining 80%. 2. However, these terms only apply after the insured has reached the policy's out-of-pocket deductible amount.

What does 20% coinsurance mean? ›

A 20% coinsurance means your insurance company will pay for 80% of the total cost of the service, and you are responsible for paying the remaining 20%. Coinsurance can apply to office visits, special procedures, and medications.

What does 20% coinsurance mean after deductible? ›

Coinsurance is a percentage of a medical charge you pay, with the rest paid by your health insurance plan, which typically applies after your deductible has been met. For example, if you have 20% coinsurance, you pay 20% of each medical bill, and your health insurance will cover 80%.

What does 100% coinsurance mean? ›

100% coinsurance: You're responsible for the entire bill. 0% coinsurance: You aren't responsible for any part of the bill — your insurance company will pay the entire claim.

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