What is a co-pay in terms of insurance?

A co-pay, or copayment, is a fixed amount that an insured individual is required to pay for specific medical services or prescriptions at the time of receiving care. This means that every time a patient accesses a covered healthcare service, they will pay this predetermined amount, while the insurance company covers the remaining costs. It helps to share the cost burden between the insurer and the insured.

In contrast, the other options refer to different types of payments related to insurance. An annual payment for coverage generally refers to the premium, which is the amount paid for maintaining the insurance policy itself. A flat fee paid periodically represents regular premium payments rather than specific service charges. The concept of a percentage of costs shared with an insurer usually relates to coinsurance, where the insured pays a certain percentage of the costs, rather than a fixed amount. Therefore, the definition of a co-pay aligns clearly with the concept of a fixed fee paid for each covered service.