What does the term "co-pay" refer to?

The term "co-pay" specifically refers to a fixed amount that an insured individual pays for a specific service at the time it is rendered. This fee is typically required for routine services such as doctor visits or prescription medications, and it is defined in the health insurance policy. The purpose of a co-pay is to share the costs between the insurer and the insured, ensuring that the insurer remains responsible for the majority of the healthcare expenses.

This fixed fee is distinct from other terms in health insurance, such as a deductible, which is the amount that must be paid out of pocket before insurance begins to cover costs, or co-insurance, which involves a percentage of costs shared between the insured and the insurer after the deductible has been met. Therefore, the definition provided aligns perfectly with how co-pays function within health insurance plans, making it the correct choice.