What is a copayment in health insurance?

A copayment, often referred to as a copay, is a fixed amount that an individual is required to pay for specific healthcare services at the time those services are rendered. This amount is predetermined by the health insurance plan and is typically seen with services like doctor visits, prescriptions, or emergency room visits. The fixed nature of a copayment allows insured individuals to know in advance what they will pay out-of-pocket for these services, providing a level of clarity in cost.

In contrast to other payment structures, such as deductibles or coinsurance, which involve varying percentages of total costs or overall billing amounts, a copayment does not fluctuate based on the total price of the service. It is an established fee that the insured pays regardless of the service cost, making it distinct and straightforward. The other options in the question describe different aspects of health insurance costs but do not accurately define a copayment.