Can someone break down coinsurance for me like I’m 5? I’m 25, work in medical billing, and I’m still on my mom’s health insurance, so I just learned about coinsurance 7 months ago. When I ask my coworkers to explain it, they say, “It’s a percentage you owe based on your benefits.” I pass that on to patients, but they still seem confused and ask more questions. I usually tell them to contact their insurance companies, since it can differ by plan. I really want to help patients understand better—how can I explain coinsurance to someone who doesn’t work in billing or insurance?
explain coinsurance to me like i’m 5
Sure! Here’s a simple way to explain coinsurance:
Imagine you and your friend go to the candy store, and you each want to buy a big bag of candy that costs $10. Your mom gives you some money, but you still need to pay for part of it yourself.
Let’s say your mom covers 80% of the cost. So, your mom gives you $8 for the bag, and you have to pay the rest. That means you need to pay 20% of the $10 yourself, which is $2.
So, coinsurance is like when your insurance pays most of the cost of something, but you still have to pay a little bit. The percentage you have to pay can be different for everyone, just like how you might share candy costs differently with different friends.
So, when someone talks about their coinsurance, they’re just talking about the part of the bill they’re responsible for paying after insurance helps out!