Co-Payment (Co-Pay)

A Co-Payment (Co-Pay) in healthcare is a predetermined, fixed amount that insured individuals must pay out of pocket for covered healthcare services at the time of service. Unlike co-insurance, which is a percentage-based cost-sharing arrangement, co-payments are set fees established by the insurance plan.

They vary depending on the type of service rendered, such as primary care visits, specialist consultations, or prescription medications. Co-payments serve several purposes: they help insurers manage healthcare costs, incentivize cost-conscious healthcare consumption, and simplify financial transactions for patients by providing clarity on their immediate financial responsibility at the point of care.