Which statement correctly describes the relationship between deductible and coinsurance?

• A. Coinsurance is paid before deductible
• B. Deductible is the amount you pay before coinsurance starts
• C. They are the same thing
• D. Deductible applies after the out-of-pocket maximum

Answer: (B)

Deductible comes first in most plans. The amount you must pay out-of-pocket for covered services before your insurer starts sharing costs is the deductible. Once you’ve met that amount, you begin paying the coinsurance—typically a fixed percentage of the covered charges—while the insurer pays the rest. This continues until you reach the out-of-pocket maximum, at which point the insurer covers most or all further covered costs.

The deductible is not the same as coinsurance, and it isn’t applied after the out-of-pocket maximum. It also counts toward the out-of-pocket maximum, helping cap your total yearly costs. So the statement that the deductible is the amount you pay before coinsurance starts is correct.