What is a copay in health insurance?
In health insurance, a copay, also known as a copayment, is a fixed amount you pay for covered healthcare services, like doctor visits or prescriptions. You typically pay it at the time of service, such as during your appointment or when picking up medication.
Here are some key points about copays:
- Fixed amount: Unlike deductibles, which can be high, copays are usually relatively low, often ranging from $10 to $50.
- Paid at time of service: You pay the copay before your insurance company pays for the remaining covered costs.
- Doesn't count towards deductible: Copays don't go towards meeting your deductible. You'll still owe the copay even after reaching your deductible.
- Ends at out-of-pocket maximum: Once you reach your out-of-pocket maximum, which is the total amount you pay for covered services in a year, you no longer owe copays for the rest of the year.
It's important to check your health insurance plan documents to understand your specific copays for different services.
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