What is a co-payment?

A co-payment is a fixed amount paid by an insured individual for a specific medical service at the time of receiving that service. This payment structure is designed to make healthcare services more accessible and manageable for patients by requiring a set, predictable fee rather than a variable amount. Typically, co-payments apply to various services, such as doctor visits, emergency care, or prescription medications, and they are part of many health insurance plans.

The rationale for using co-payments includes incentivizing responsible use of healthcare services and ensuring that patients have some financial commitment, thereby fostering shared responsibility for costs between the insurer and the insured. This fixed payment allows patients to know exactly what their out-of-pocket expense will be at the moment they receive care, helping to reduce anxiety about variable costs associated with medical treatment.