What is a co-payment?

A copayment, or co-pay, is a cost-sharing requirement in health insurance law in Washington. It is a fixed amount of money that is paid out-of-pocket by the insured for a medical service or prescription drug. This amount is usually paid directly to the medical service provider at the time of service. In some cases, the co-pay may be taken out of pocket by the insured, or they may be billed for the amount at a later date. The purpose of a co-payment is to encourage insured individuals to be more responsible with their health care costs and to keep health care spending down. The amount of the co-payment is determined by the insurance provider and is generally designated in the insurance policy. Typically, the co-payment is less than the amount billed to the insurance company, meaning that the insured does not pay the full amount for the service or prescription drug. Co-payments are usually required for medical services such as doctor visits, lab tests, surgeries, hospitalizations, and prescription drugs. Depending on the insurance plan, the copayment might be waived for certain services, such as preventive care. This is beneficial for insured individuals, as it is often less expensive than paying the full cost for medical costs.

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What is a co-payment?

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