What does a copayment mean in a health insurance context?

In the context of health insurance, a copayment refers to a specific amount that an insured individual is required to pay for particular healthcare services at the time they receive those services. This fixed fee is typically outlined in an insurance policy and can vary depending on the type of service—such as a visit to a doctor, a specialist, or for prescription medications.

The structure of copayments is designed to make healthcare costs more predictable for insured individuals, as they know in advance the amount they will be responsible for paying when they seek care. This mechanism also encourages individuals to seek medical services while still sharing some of the financial responsibility. Copayments are distinct from other cost-sharing methods like coinsurance, where the insured pays a percentage of the total cost instead of a fixed fee.

Understanding this concept is critical for navigating insurance policies and managing healthcare expenses effectively.