Which of the following describes the relationship between co-insurance and deductibles?

Co-insurance refers to the percentage of costs that a policyholder must pay for covered services after they have met their deductible. Once you have met your deductible, your insurance plan typically covers a portion of the expenses, and you are responsible for the remaining portion, which is where co-insurance comes into play. For example, if your co-insurance rate is 20%, after you have paid your deductible, your insurance will cover 80% of the costs, and you will pay the remaining 20%.

This relationship is crucial because it outlines how financial responsibilities are shared between you and your insurer after certain thresholds are met, particularly the deductible. Therefore, option C correctly captures this dynamic in health insurance plans. Understanding this relationship helps individuals navigate their healthcare expenses more effectively, particularly how much they will actually pay out-of-pocket after certain costs are covered by insurance.