Copayment
A copayment is a fixed dollar amount a beneficiary pays for a covered service or prescription, such as a set fee per office visit or per drug. Unlike coinsurance, it is a flat amount rather than a percentage of the cost.
Definition
A copayment is a fixed dollar amount a beneficiary pays for a covered service or prescription, such as a set fee per office visit or per drug. Unlike coinsurance, it is a flat amount rather than a percentage of the cost.
Why it matters
Copayments are a common form of cost-sharing in Medicare Advantage and Part D plans, so comparing copay structures helps beneficiaries estimate out-of-pocket cost.
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