What Is A Co-Pay?
The Short Answer: A set amount you must pay out-of-pocket each time you use a particular service, such as a doctor visit. So if a doctor visit is $100, you might pay a $10 co-pay and your insurance would pay $90, once you’ve met your deductible.
So, the co-pay is designed by your insurer to make you share in the cost of certain services, which are outlined in your plan. Not every service has a co-pay but the most frequently used services are very likely to have a co-pay, like doctor visits or ER visits. Typically the co-pay counts toward your deductible and out-of-pocket maximum but not always, so check your plan. Usually, once you meet your out-of-pocket maximum, the co-pay goes away for that year but again, check your plan. Don’t confuse co-pay with co-insurance which is explained here.
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An HSA is a tax free savings account that allows you to set aside pretax money to cover health care not covered by your insurance. To be eligible for an HSA in 2020, you must have a qualifying, high-deductible health plan (HDHP) with an annual deductible of at least $1,400 for an individual or $2,800 for a family. You can’t contribute to an HSA if you’re enrolled in Medicare or a dependent listed on someone else’s tax return.