An indemnity plan limitation that pays dental bills after a certain amount is paid by the insured is known as?

The correct response is that the plan limitation is known as coinsurance. Coinsurance refers to a cost-sharing arrangement in which the insured pays a certain percentage of the dental bills after meeting a predetermined deductible. In this scenario, after the insured has paid their deductible amount, the insurer will then pay a percentage of the remaining bills while the insured is responsible for the rest.

Understanding coinsurance is essential in the context of insurance plans, especially in dental care, as it directly affects out-of-pocket costs for patients. Unlike full coverage plans where the insurer pays the total amount directly, coinsurance requires the patient to actively participate in payment based on agreed percentages, which can vary based on the type of treatment received.

The mention of other terms highlights contextual differences: a managed plan typically involves a network of providers and may have different payment structures, while stop loss usually refers to a cap on out-of-pocket maximums for the insured. A deductible is the initial amount the insured must pay before the insurer begins to cover costs, rather than a cost-sharing arrangement like coinsurance.