What Does Copayment Mean
Posted: 10/11/2009
Copayment or copay is a predefined payment amount agreed to in the insurance policy and paid by the insured person each time a medical service is accessed. Copayment is in essence a form of coinsurance, but may be defined differently in health insurance where a coinsurance is a percentage payment after the deductible up to a certain limit. Before any policy benefit is payable by an insurance company, copayment must be paid. Copayments usually do not contribute towards any policy out-of-pocket maximums, where coinsurance payments do.
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