Final answer:
The maximum amount of coinsurance in New York's major medical plans is determined by a percentage, often around 20%, of the medical costs after deductibles are met, subject to an out-of-pocket maximum limit.
Step-by-step explanation:
The maximum amount of coinsurance in New York's major medical plans is not a fixed amount, but rather a percentage of costs after the deductible is met.
Typically, an individual may have a coinsurance rate, for example, 20%, where they are responsible for paying 20% of medical costs while the insurance covers the remaining 80%. However, there may be a maximum out-of-pocket limit which caps the total expenses an individual has to bear in a year, including deductibles, copayments, and coinsurance.
Coinsurance, along with deductibles and copayments, serves the purpose of reducing moral hazard by ensuring that the insured party bears a portion of the health care costs. This cost-sharing mechanism promotes responsible use of medical services and helps prevent over-utilization, which can drive health care costs higher.