What is a copayment?

A copayment is a predetermined flat fee that a patient must pay at the time of receiving medical services. This fee is typically established by the health insurance plan and varies depending on the type of service provided, such as a visit to a doctor, a specialist, or an emergency room. The purpose of a copayment is to share the cost of healthcare between the insurer and the insured, helping to control healthcare spending and encourage responsible use of medical services.

In contrast, other options refer to different payment structures within healthcare. A percentage of the total bill is usually described as coinsurance, which is not the same as a copayment. An annual payment made towards insurance refers to premiums that are paid to maintain coverage but do not pertain specifically to individual service visits. Lastly, the statement regarding payments made by employers generally relates to contributions toward employee health insurance plans or premiums rather than direct patient payments like copayments.