Which of the following best describes co-payment?

Co-payment is defined as a fixed amount that an insured individual is required to pay for specific healthcare services at the time of receiving those services. This payment structure is common in many health insurance plans, where the insurer covers the remainder of the service cost after the co-pay has been made. For example, a health plan might require a $20 copayment for a doctor’s visit, meaning the insured pays $20, while the insurance company covers the rest of the bill.

Understanding co-payments is essential because they often apply to various services like office visits, prescription medications, and emergency room visits. This feature allows insurance companies to share the costs of healthcare services with their policyholders, making it a key concept in health insurance plans.

Contextually, other options describe different aspects of health insurance without accurately relating to what a co-payment involves. The total amount after reaching the out-of-pocket maximum pertains to overall costs covered by the policy in a given year, while premiums are the payments made to maintain the health insurance coverage. On the other hand, the deductible refers to the amount an insured must pay out-of-pocket before the insurance company begins to pay, which is distinct from the concept of a co-payment.