Definition: The copayment is a fixed amount the insured is required to pay to the provider. Some call it the co-payment or copays since there can be different copayment amounts for different services.
Copays are usually what one pays when they visit a doctor or purchase a prescription. The copayment is almost always required at the time of service or at the time one would purchase their prescription medication. Then the doctor or pharmacist will bill the insured's insurance company for the remaining amount due.
Sometimes copays are confused with the co-insurance payment. The co-insurance payment is different as it is a percentage that the insured is required to pay and is usually due for larger procedures such as a surgery.
Alternate Spellings: co-payment, copays
Examples:
Dean needed to go see his doctor for a lingering cough. When he went to his visit, he was required to pay a $40 copayment to the doctor at the time of service. The doctor's office then billed the remaining amount due to Dean's insurance company.
