What is a co-payment in healthcare?

A co-payment in healthcare refers to a fixed amount that an insured individual pays at the time they receive a specific service, such as a doctor's visit or a prescription medication. This amount is predetermined and is typically outlined in the individual's health insurance policy. For example, a patient might have a co-payment of $20 for a doctor's appointment, meaning they will pay that flat fee for each visit, regardless of the overall cost of the service.

This approach allows patients to have some cost-sharing responsibility at the point of service while ensuring that insurance covers the bulk of the expense. Co-payments are designed to encourage patients to utilize healthcare services responsibly while remaining financially manageable.