Cost Sharing
/ˈkɒst ˈʃɛərɪŋ/
Definitions
- (n.) An arrangement whereby costs of services or projects are divided between parties, often used in contracts or insurance to allocate financial responsibility.
The parties agreed on cost sharing for the joint venture expenses.
- (n.) In health insurance law, the portion of healthcare service costs that the insured must pay out-of-pocket, such as deductibles, copayments, or coinsurance.
The insurance policy included cost sharing that required the patient to pay a copayment for each visit.
Forms
- cost sharing
Related terms
See also
Commentary
In drafting, clearly specify which costs are subject to sharing and the proportion or method of allocation to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.