What is the term for an indemnity plan limitation where the insured pays a portion of dental bills?

The term that refers to the arrangement where the insured pays a portion of dental bills is known as coinsurance. In dental insurance and other types of health insurance, coinsurance is typically expressed as a percentage that the insured must pay after meeting any applicable deductible. For example, if a dental procedure costs $100 and the coinsurance is 20%, the insured would pay $20 while the insurance company would cover the remaining $80.

This mechanism is designed to share the cost of healthcare between the insured and the insurer, encouraging responsible use of services while also protecting the insurer from excessive claims. Coinsurance functions alongside other cost-sharing methods like deductibles, which are amounts the insured must pay out-of-pocket before the insurance begins to cover costs.

Managed plans refer to a type of health insurance arrangement that includes a network of providers but do not specifically pertain to the sharing of costs between insured and insurer. Stop loss is a provision in an insurance policy that caps the maximum amount an insured pays out-of-pocket, not a specific payment arrangement for dental bills. Lastly, a deductible is a fixed amount the policyholder must pay before the insurance coverage kicks in and does not involve sharing a percentage of costs like coinsurance does.