Definition - What does Co-pay mean?
A co-pay is a set dollar amount a policyholder must pay out of pocket for health care services, such as a doctor's appointment and prescription medications, upon receiving the service, with the insurance company covering the rest of the costs. It is not the same as coinsurance, wherein the policyholder pays a certain percentage of the total covered costs.
It is also known as a copayment.
Insuranceopedia explains Co-pay
Co-pays vary across insurers but tend to be no more than $25. For instance, a co-pay health insurance plan may require the policyholder to pay $5 per prescription a $15 per doctor visit. However, for an emergency room visit, the co-pay may be significantly higher. Those who often go to the doctor or require many prescriptions may want to consider plans with low co-pays to save in the long run.
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