What is a copayment (copay)?

A copayment, often referred to as a copay, is a predetermined, fixed amount that a policyholder pays for specific medical services at the time of receiving care. This arrangement allows the insured individual to manage their healthcare expenses more predictably, as the copayment amount does not vary based on the total cost of the service being provided.

In various health insurance plans, copay amounts can differ based on the type of service received, such as a routine doctor's visit, specialist consultation, or prescription medication. This structure makes it easier for both patients and providers to understand financial responsibilities upfront, as the copay is typically visible on the health insurance card and is collected at the time of service.

Understanding copayments is crucial for policyholders in managing healthcare costs and making informed decisions about where and when to seek medical care.