What does "copayment" mean in health insurance?

The term "copayment" in health insurance specifically refers to a fixed amount that an insured individual is required to pay for a particular service at the time it is rendered. This amount is established by the insurance policy and differs depending on the type of service provided, such as visits to a primary care physician, specialist, or for certain procedures.

Copayments are designed to share the costs of healthcare between the insurer and the insured, ensuring that patients contribute to their healthcare expenses while offering predictable costs for specific services. This structure helps reduce the burden on insurance by preventing overutilization of medical services. Other terms such as deductibles or premiums refer to different aspects of health insurance and do not define the copayment specifically. For instance, while a partial payment before coverage or a total amount for a service may occur in other contexts, they do not accurately represent the specific mechanism of copayments.