Definition: "Co-insurance" in the context of health care refers to a benefit provided by an employer or government entity that reimburses the employee for costs associated with covered medical procedures or treatments, as determined by the employee's individual policy. In simpler terms, co-insurance means that the cost of treatment is shared between the employee and their employer. This can include things like copays, coinsurance, deductibles, or other forms of out-of-pocket payment. The goal of co-insurance is to provide a financial buffer in cases where the actual costs are higher than what was anticipated. To understand how this works, it's important to remember that insurance companies typically have an incentive to negotiate with their customers for lower premiums, since they want to make more money from each claim. Therefore, when patients choose to participate in co-insurance plans, they are essentially giving up some control over the cost of their medical treatments and instead subsidizing them with government-provided funds. In summary, co-insurance is a benefit provided by an employer or government entity that reimburses the employee for costs associated with covered medical procedures. It's intended to help patients manage out-of-pocket expenses while minimizing overall insurance costs.

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