What does "co-payment" refer to?

Co-payment refers to a fixed amount that a patient is required to pay for specific healthcare services at the time they receive those services. This arrangement is commonly found in health insurance plans, where patients may have different co-pays for various types of services, such as a visit to a primary care physician, a specialist, or for prescription medications.

Having a co-payment helps manage healthcare costs for both the insurer and the patient, as it establishes a predictable out-of-pocket expense for patients at the time of service. This structure can also encourage patients to seek necessary medical care, knowing exactly what their upfront cost will be when accessing certain services.

Other options describe different aspects of health insurance or costs associated with it. A set fee based on yearly income is typically related to income-based assistance programs rather than co-payments. The total annual cost of insurance premium and deductible summarizes the overall fiscal commitment of an insurance plan but doesn't address the concept of co-payment specifically. Lastly, the percentage of a bill paid by the insurer pertains to coinsurance, not to the fixed costs associated with co-pays, which are set amounts rather than a proportion of the service cost.