In the context of medical billing, what does "co-payment" refer to?

Co-payment refers to a fixed amount that a patient is required to pay at the time of receiving a specific medical service, such as a doctor's visit or a prescription medication. This financial structure is commonly found in many health insurance plans and serves as a cost-sharing mechanism between the insurer and the insured.

In practice, co-payments help to manage healthcare costs by encouraging patients to share in the expense of their care, making them more mindful of their medical choices. For instance, if a service has a co-payment of $20, the patient pays this amount directly during the visit, while the insurance covers the remaining costs.

The other choices illustrate different aspects of medical billing but do not accurately define co-payment. A regulation for insurance claims pertains to guidelines governing the processing of claims rather than patient payments. The total bill a patient must pay after insurance coverage could include various charges and is not specific to co-payments. Discounts applied to services refer to reductions in the price charged and do not align with the concept of a co-payment, which is always a predetermined and fixed charge regardless of the total cost of services rendered.