What is a copayment in medical expense insurance?

• A. A fixed amount paid by the insurer for each service.
• B. A percentage of the total bill.
• C. A fixed amount paid by the insured for a covered service.
• D. A limit on annual benefits.

Answer: (C)

Copayment is a fixed amount paid by the insured for a covered service, usually at the time of service. The amount stays the same regardless of the total charge, with the insurer covering the remainder per the plan. This differs from coinsurance, which is a percentage of the cost after any deductible is met, and it’s not a limit on benefits or a payment made by the insurer. For example, a plan might require a $20 copayment for a doctor's visit, while the insurer pays the rest according to the coverage terms.