How do co-payments work in health insurance?

Co-payments, commonly referred to as co-pays, are a feature of many health insurance plans. They represent a fixed amount that the insured individual is required to pay at the time of receiving a covered healthcare service. This amount is predetermined by the insurance plan and is typically due at the point of service, such as when visiting a doctor's office or picking up a prescription.

This structure allows for predictable out-of-pocket costs for patients, as they know in advance what they will owe for specific services. Co-payments generally vary depending on the type of service; for example, a visit to a primary care physician may have a different co-pay than a specialist visit or an emergency room service.

In contrast, other features such as deductibles and coinsurance involve varying amounts based on overall costs or service types, leading to less predictability in expenses. Understanding co-payments is crucial for managing healthcare costs and making informed decisions about utilizing health services.