Co-pay

What Does Co-pay Mean?

A co-pay, also known as a copayment, is a fixed dollar amount that a policyholder must pay out of pocket for healthcare services, such as doctor appointments or prescription medications, at the time of service. The insurance company covers the remaining costs. Co-pays differ from coinsurance, where the policyholder is responsible for paying a percentage of the total covered costs.

Insuranceopedia Explains Co-pay

Co-pays vary by insurer but are typically capped at around $25. For example, a co-pay health insurance plan might require the policyholder to pay $5 per prescription and $15 per doctor visit. However, co-pays for emergency room visits are often considerably higher. Individuals who frequently visit the doctor or require numerous prescriptions may benefit from choosing plans with lower co-pays to save money over time.