What is a copayment?

A copayment is a fixed amount that a patient is required to pay at the time of receiving a specific healthcare service, such as a doctor’s visit or a prescription medication. This fixed fee is established by the health insurance policy and varies based on the type of service. Copayments are designed to share the cost of healthcare between the patient and the insurance provider, making certain services more accessible while encouraging patients to be more mindful of their healthcare usage.

The other choices describe different financial terms in healthcare. A percentage of the total healthcare cost refers to coinsurance, which is different from a copayment as it varies based on the total amount of the service. The total amount a patient pays per year could refer to their out-of-pocket maximum or deductible, which signifies a different aspect of insurance premiums and payments. A fee charged to providers for services rendered typically relates to billing practices or provider reimbursements, rather than direct patient costs. Each of these concepts is important in the broader context of healthcare finance, but a copayment specifically denotes that predetermined amount paid by a patient during a visit or for medication.