The patient’s share of costs after insurance is applied is called:

• A. Cost sharing
• B. Fee
• C. Allowance
• D. Adjustment

Answer: (A)

Cost sharing is the portion of a bill the patient is responsible for after the insurer has processed the claim. It includes deductible amounts, copayments, and coinsurance that apply to the service. The other terms describe different parts of billing: a fee is the provider’s charge; an allowance is the insurer’s approved amount for the service; an adjustment is the difference between billed and allowed amounts.