What does the term "co-payment" refer to?

Co-payment, often referred to as a co-pay, is a fixed amount that a patient is required to pay at the time of receiving healthcare services. This financial structure is commonly used in health insurance plans to share the cost of services between the patient and the insurer. By requiring a co-payment, insurance providers encourage responsible use of healthcare services, as patients have a direct financial contribution to each visit or service received.

This system allows patients to have a clearer understanding of their out-of-pocket expenses for specific services, such as a doctor's visit or medication. For instance, a person with health insurance may have a co-payment of $20 for each visit to a primary care physician, meaning that they will pay this amount regardless of the total cost of the service. This helps in managing costs for both the patient and the insurance company, as it limits the incentive to overuse medical services since patients are responsible for part of the expense.

In contrast, other options describe different elements of healthcare billing and insurance. A percentage of the total bill paid by the insurer refers more to coinsurance rather than a co-payment. The total cost charged by a healthcare provider would pertain to the overall charge for services rendered, while the amount covered by the insurance plan indicates what percentage