What is a Co-Pay?

What Is A Co-pay?

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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.