What is a co-pay?

A co-pay is defined as a fixed dollar amount that a patient is required to pay at the time of receiving a service, such as a doctor's visit or a prescription medication. This payment is generally specified in the health insurance policy and is designed to share the cost of healthcare services between the patient and the insurance provider.

Co-pays can vary depending on the type of service; for instance, an office visit might have a different co-pay amount compared to a specialist visit or an emergency room visit. This system helps manage healthcare expenses for insurance companies and encourages patients to use necessary healthcare resources, as they will have some financial responsibility for their care upfront.

In contrast, the other options refer to different concepts within health insurance. One describes a deductible, which is the total amount a patient must pay out-of-pocket before insurance coverage kicks in, another option refers to costs incurred after a deductible has been met, and a premium typically refers to the regular payments made for maintaining insurance coverage.