Percentage Participation Law and Legal Definition

Percentage participation is a contract provision, commonly found in major medical insurance policies, making the insured responsible for a specified percent of covered expenses. It is an arrangement in which the insured employee and the insurer share the medical and hospital expenses in a predefined ratio after the deductible is met.

It refers to a provision in a health insurance contract which states that the insurer will share losses in an agreed proportion with the insured. Also known as a form of cost. For example, a 10% participation requires the insured to pay 10% of a claim and the insurer to pay 90%.