What is a copay in the context of health insurance?

A copay is defined as a flat fee that individuals are required to pay for specific healthcare services or medications at the time of the service. This fee is a fixed dollar amount set by the insurance plan and can vary based on the type of service. For example, a health insurance policy may require a copay of $20 for a doctor's visit and a different copay for specialist visits or emergency room services.

Understanding copays is essential because they are a part of managing out-of-pocket costs for patients, providing a predictable expense that assists with budgeting for healthcare. It is important to note that copays typically apply after the deductible has been met, but in some plans, certain services may have a copay that applies regardless of the deductible status. The other options refer to different cost-sharing terms within health insurance, and while they all relate to patient expenses, they do not accurately define a copay.