The maximum amount a plan will pay for a covered health care service is known as a copayment, or copay. This fixed rate is paid every time you visit a doctor or fill a prescription and is printed on your health plan's identification card. Copays are a common way of sharing costs in many health insurance plans, and understanding what they are and how they work can help you make informed decisions about your health care costs. Cost sharing is the part of the costs that you cover out of pocket. In many health insurance plans, you pay 100 percent of the expenses until your deductible is reached.
After meeting the deductible, you pay a copay. Insurance plans may require higher copays for doctors who don't belong to the network or to doctors who don't operate within that insurance company's network. A health insurance copay is a fixed amount established by an insurance plan to share the cost of covered services between the plan and the customer. Different co-pays are set for different types of services, such as an emergency room visit.
When it comes to health insurance copays and other out-of-pocket expenses, you can use money from your Health Savings Account (HSA) to cover them. However, in most cases, you'll only have access to an HSA if you have a high-deductible health plan (HDHP). Health insurance policy holders may pay a copay and a coinsurance for the same medical appointment. If you decide to visit an in-network doctor, one who accepts your type of health insurance plan, you'll pay an in-network copay, which is usually lower.
A deeper understanding of copayments can help you decide which insurance will provide you with better medical and financial services. Knowing what a copayment is and how it works can help you make informed decisions about your health care costs.
