What is one advantage of having coinsurance in health insurance policies?

Having coinsurance in health insurance policies serves primarily to involve the insured in the cost-sharing of medical expenses, which can incentivize them to seek necessary care. Since coinsurance requires the insured to pay a certain percentage of the costs after the deductible has been met, it encourages policyholders to be mindful of their healthcare spending. This means that insured individuals are more likely to consider the necessity of medical services before utilizing them because they will be partially responsible for the costs.

This cost-sharing arrangement is designed to promote responsible use of healthcare resources, as individuals will evaluate the importance and potential need for medical care when they know they will bear a portion of the cost. As a result, this can lead to a more efficient healthcare system where resources are used more judiciously.