Cost-Sharing Definition: Any contribution
consumers make towards the cost of their healthcare as defined in their health insurance policy.
Two types of cost-sharing commonly used in subsidized insurance programs are:
- Set fee paid by the consumer "up-front," such as sliding scale premiums or enrollment fees.
- Set fee paid by the consumer "at-time-of-service," such as copayments or deductibles, in order to obtain specific healthcare services (e.g., office visit or prescription drugs).
Another form of cost-sharing commonly found in private insurance policies (and less often utilized in public programs is coinsurance. Coinsurance is a percentage of the total charges incurred for medical services.