Coinsurance for hospitalization costs is 20% of costs paid by the patient.

Coinsurance for hospitalization costs is 20% of costs paid by the patient.

• A. True
• B. False
• C. 10%
• D. 0%

Answer: (A)

Coinsurance is the portion of covered medical expenses that the patient pays after meeting the policy’s deductible. If hospitalization costs have 20% coinsurance, the patient would pay 20% of the eligible hospital charges, while the insurance pays 80%, assuming the deductible has been met. In practice, the actual amount can be influenced by deductible requirements and any out-of-pocket maximum, and some services may use copays instead of coinsurance. But the statement reflects the standard meaning: the patient is responsible for 20% of the costs.

Coinsurance is the portion of covered medical expenses that the patient pays after meeting the policy’s deductible. If hospitalization costs have 20% coinsurance, the patient would pay 20% of the eligible hospital charges, while the insurance pays 80%, assuming the deductible has been met. In practice, the actual amount can be influenced by deductible requirements and any out-of-pocket maximum, and some services may use copays instead of coinsurance. But the statement reflects the standard meaning: the patient is responsible for 20% of the costs.