What term describes the fixed amount paid by the insured for a medical service before the insurer pays?

• A. Deductible
• B. Copayment
• C. Premium
• D. Coinsurance

Answer: (B)

Copayment is the fixed amount you pay out-of-pocket for a specific medical service at the time you receive it. You give that amount to the provider, and the insurer covers the rest of the service cost under the plan. This per-visit fixed payment is what the term describes.

This differs from a deductible, which is an annual amount you must pay before the insurer starts paying for most services, not tied to a single visit. It also differs from coinsurance, which is a percentage of costs you pay after meeting the deductible. And it’s not about the regular payment to maintain coverage—that’s a premium. For example, a $25 copay means you pay $25 per visit, and the insurance handles the remaining eligible charges.