What is the primary benefit of coinsurance for both the insured and insurer?

The primary benefit of coinsurance lies in its ability to share the burden of costs for medical expenses between the insured individual and the insurer. In a coinsurance arrangement, once the insured has met their deductible, they pay a percentage of the costs for medical services while the insurer pays the remaining percentage. This arrangement encourages the insured to use healthcare services responsibly, as they are financially invested in the costs that exceed their deductible.

For the insurer, coinsurance helps to mitigate their risk by ensuring that the insured is not completely shielded from the costs of care. This shared responsibility can lead to more judicious use of healthcare services, as individuals may think twice before seeking care that is not necessary, knowing that they will have to pay a portion of the costs. Additionally, this structure can help stabilize insurance premiums, as it can lead to lower overall claims costs in the long term.

The other options, while they touch on aspects of healthcare and insurance concepts, do not directly address the fundamental nature of coinsurance. For instance, while it may encourage preventative care, that is not the primary purpose. Similarly, it does not fixate total costs or eliminate deductibles; those features are governed by the overall insurance policy rather than the specific coinsurance mechanism.