Copayments, or copays, are a common form of cost sharing under many health insurance plans. Cost sharing is simply the portion of costs ...SmallBusinessUnderstandingaHealthInsuranceCopaymentBYdavalonUpdatedonJanuary11,2021ShareCopayments,orcopays,areacommonformofcostsharingundermanyhealthinsuranceplans.Costsharingissimplytheportionofcostscoveredbyyououtofpocket.Splittingthecostofmedicalservicesbetweentheinsurancecompanyandthepolicyholderkeepsyourmonthlymedicalbillsincheck.Ifyou’reenrolledincoveragethroughasmallbusinessplanorgrouphealthinsurance,youremployeristypicallynotresponsibleforcopayments.Copaymentsareusuallytheresponsibilityofthepolicyholder.Understandinghowthissystemworkshelpsyoumakesmartinsurancechoicesthatsuitbothyourhealthcareneedsandbudget.Here’swhatyouneedtoknowwhenitcomestohealthinsurancecopaysandotherout-of-pocketcosts.Whatisacopayment?Ahealthinsurancecopaymentisafixedamountsetbyaninsuranceplanforsharingthecostofcoveredservicesbetweentheplanandthecustomer.Thecost-sharingsystemisacriticalsellingpointforeachplanbecauseitbreaksdownhowmuchyou’llactuallyoweforservices,prescriptions,doctorvisits,andmore.It’simportanttounderstandthecost-sharingdetailsofanyhealthinsuranceplanyou’reconsidering,especiallyforfrequentlyusedservicesorprescriptions.Keepinmindthattheseareout-of-pocketcostsyou’llpayinadditiontomonthlypremiumsandcostsfornon-coveredservices.Costsharingprimarilycomesinthreeforms:Copayment:Thisisafixed,flatfeeforcertainkindsofofficevisits,prescriptiondrugs,orotherservices.Becausethehealthinsurancecopayisfixed,you’llknowaheadoftimeexactlyhowmuchyouowe.Ifyourpolicylistsacopaymentof$25foradoctorvisit,youpaythatamounteachtimeyouseethedoctor.Coinsurance:Thisisapercentageofthetotalcostforacoveredmedicalservice,insteadofafixedcopayment.Iftheinsurancecompanyowesadoctor$100foryourvisit,andyouhaveacoinsuranceof25percent,you’llpay$25forthevisit.Youmaypayitatthetimeofserviceorgetabillforyourportionafterthevisit.Annualdeductible:Anannualdeductibleisasetamountthatyoum