An Example of Medicare Coinsurance
Here’s a simple example to help you have a better understanding of how coinsurance works. You visit your doctor for a health issue. You are enrolled in Medicare Part A and Part B, and have already met Part B deductible for this year. Your healthcare provider accepts assignments as full payment. Below is a breakdown for the medical expenses:
– Your doctor charges: $300
– Medicare-approved amount: $220
– You pay 20 percent coinsurance: $44
– Medicare pays 80 percent: $176
– Your total payment: $44
In this case, the doctor charges $300 for the service, but you only need to pay 20 percent coinsurance ($44). The remaining amount is covered by Medicare. [4]
