Which statement is true regarding coinsurance?

Coinsurance is a key component of health insurance that specifies what percentage of a claim costs are paid by the insured after the deductible has been met. When an insurance policy has a higher coinsurance percentage for the insured, it generally implies that the policyholder will be responsible for a greater share of their healthcare costs, leading to lower risk for the insurer. Consequently, because the insurer's financial liability is reduced, policies with higher coinsurance percentages typically come with lower premiums. This relationship creates an incentive for insured individuals to opt for plans that require them to pay a larger share of their healthcare costs, thereby decreasing their upfront premium costs.

Understanding this dynamic is crucial for individuals assessing their health insurance options, as it highlights how their financial involvement in healthcare decisions can impact their overall insurance expenses. By grasping the connection between coinsurance and premiums, individuals can make more informed choices that align with their financial situations and healthcare needs.