Definition
The percentage of a medical bill you keep paying after meeting your deductible, until you hit the plan's out-of-pocket maximum. An 80/20 plan means insurance pays 80% and you pay 20% in that middle zone.
Why it matters
People budget for the deductible and forget coinsurance, which is often the larger number in a serious year. The out-of-pocket maximum, not the deductible, is the real worst-case figure for emergency planning.
Example
A $10,000 procedure on an 80/20 plan with a $2,000 deductible: you pay the first $2,000, then 20% of the remaining $8,000 ($1,600), a total of $3,600, unless the plan's out-of-pocket maximum caps it sooner.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.