What is the difference between coinsurance and co-payment?
On occasion, these terms have been used interchangeably. However, it is
preferable to define the two terms differently, despite their similarity
of purpose. Under a co-payment or copay provision, the insured usually is
required to pay a set or fixed dollar amount (e.g., $3, $5, or $10) each
time a particular medical service is used. Copay provisions are frequently
found in medical plans offered by health maintenance organizations (HMOs)
where a nominal co-payment is applied to each office visit and to each prescription
that is filled.
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