What does a "co-payment" mean in health insurance?

In health insurance, a "co-payment" refers to the fixed amount that the insured pays for specific services at the time they receive those services. This is a routine part of many insurance plans and helps to share the cost of healthcare between the insurer and the insured. Co-payments are often required for various types of medical visits, services, or prescription medications.

For example, when a patient visits a doctor, they might need to pay a co-payment of $20 at the time of the appointment. This amount is predetermined by the insurance plan and remains consistent for those specific services, regardless of the total cost of the service. By having a co-payment, insurance plans encourage patients to seek necessary medical care while also managing their overall healthcare spending.