05/13/2026
Insurance terminology can be confusing. At Golden Benefits we love to help our clients understand the industry jargon because we believe it empowers you to make an educated decision on which plan is going to benefit you the most.
So let's answer the common questions we receive from our clients!
-What is a "deductible"?
A deductible is the amount you pay before insurance starts to pay.
For example: If your deductible is $3,000, that is the amount you will pay out of pocket before insurance starts sharing in the cost of your medical expenses.
-What is a "copay" (copayment)?
A copay is a fixed dollar amount that you pay for certain medical services, usually before you hit your deductible.
For example: Your insurance card says you pay $30 for a primary care visit, or $10 for generic prescription drugs.
This set amount is how much you will spend for each visit or generic drug.
-What is "coinsurance"?
Coinsurance is the amount you pay for covered services after you meet your deductible. It is expressed as a percentage.
For example, say you need a procedure that costs $5,000, but your deductible is $3,000 and your coinsurance amount is 20%. You will pay the deductible amount of $3,000, then pay 20% of the remaining $2,000 and your insurance company will pay the rest (80% of the $2,000).
