What is the term for a payment arrangement where a managed care plan covers 80% of a prescription cost and the patient pays the remaining 20%?

The term that describes a payment arrangement where a managed care plan covers 80% of a prescription cost and the patient is responsible for the remaining 20% is called coinsurance. Coinsurance typically refers to the share of the costs of a covered healthcare service that a patient pays after the deductible has been met. In this case, the managed care plan covers the larger portion, while the patient contributes a smaller percentage of the total cost, which exemplifies the principle of coinsurance as a proportional cost-sharing model.

Co-payment, on the other hand, refers to a fixed dollar amount a patient pays for a specific service or prescription at the time of receiving it, rather than a percentage. A deductible is the amount a patient must pay out of pocket before their insurance begins to cover costs, while a premium refers to the amount paid periodically (usually monthly) to maintain insurance coverage. Therefore, none of these terms accurately describe the arrangement where a specific percentage of costs is shared, making coinsurance the correct term.