Coinsurance

A deductible is the amount that you must pay out of your pocket before the insurance company will start to pay. If you have a coinsurance, then after you meet the deductible you will go into the coinsurance until that is satisfied. Once the coinsurance is met than the company will cover the rest at 100% up to the lifetime maximum of the policy.
    For example, if you have a $500 deductible with an 80/20 to $5,000 coinsurance, then you will first have to pay $500 out of your pocket. Once you have paid the $500 deductible you will then go into the 80/20 coinsurance. In this case the company will pay for 80% of the bills and you will pay the remaining 20% until $5,000 is reached. 20% of $5,000 is $1,000 so you will actually have a total of $1,500 in out of pocket expenses with the deductible and coinsurance all together.