What is the main intent of a Coinsurance clause in a Major Medical policy?

The main intent of a Coinsurance clause in a Major Medical policy is to discourage overutilization of insurance coverage. Coinsurance is the provision that requires the insured to share a certain percentage of the costs of covered medical expenses after the deductible has been met. By mandating that the policyholder pay a portion of the costs, it directly incentivizes individuals to be more judicious in their use of medical services. This cost-sharing mechanism helps promote more responsible healthcare consumption, as patients are less likely to seek unnecessary treatments when they know they will have to bear part of the expense.

While the other options touch on different aspects of insurance, they do not align with the primary objective of a Coinsurance clause. Reducing premium costs often occurs through various design features of the policy, not specifically through coinsurance. Expanding coverage options is typically related to the choice of benefits and plan design rather than the Coinsurance clause. Meanwhile, simplifying the claims process focuses on the administrative side of insurance rather than influencing patient behavior regarding service utilization.