The Complete Guide to Understanding Co-Pays in Health Insurance: Everything You Need to Know

Co-pay

The amount of money the patient has to pay that the insurance company will not pay.

A co-pay, short for co-payment, refers to the fixed amount of money that an insured person is required to pay for a particular healthcare service or product. This amount is usually determined by the insurance plan and may vary depending on the type of service or treatment required.

For example, if an individual visits a doctor’s office that requires a $25 co-pay, that person will be required to pay $25 out-of-pocket at the time of the visit. The insurance plan will then cover the remaining cost of the visit.

Co-pays are a common feature of insurance plans and are designed to share costs between the individual and the insurer. They are generally used to discourage overuse of healthcare services and to help control healthcare costs. It is important for individuals to understand their co-pay obligations under their insurance plan and budget accordingly to avoid unexpected expenses.

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