Which of the following is true about coinsurance?

Coinsurance represents a cost-sharing arrangement between the insured and the insurer, where the insured pays a certain percentage of the costs for covered services after the deductible has been met. This means that once the individual has paid their deductible, they are responsible for a specified percentage of subsequent medical bills, while the insurance company pays the remainder. For example, if a policy has a coinsurance rate of 20%, the insured would cover 20% of the costs for covered services, and the insurance would cover 80%.

This concept is fundamental in understanding how health insurance plans work, as it directly affects the out-of-pocket expenses that patients incur for their medical care. The percentage rate encourages patients to be more mindful about healthcare consumption, as they have a direct financial stake in the costs of the services they receive.

Regarding the other options, they each describe characteristics that do not align with the definition of coinsurance, reinforcing why the correct choice emphasizes the percentage model applied after the deductible rather than fixed amounts or coverage guarantees.