A copay (also known as a copayment) is your share of the cost for medical care. It is often expressed as a percentage of the total cost.
For example, if your copay is 20%, that means your insurance pays 80% of the cost and you pay 20%. Your copay depends upon your insurance and can vary depending on the type of service that you receive.
How is a Copay different than a Deductible?
While both copays and deductibles are out-of-pocket costs, they are different. A deductible is the amount that you pay before your health insurance pays anything. Once you have paid your deductible, you and your insurance company share the balance of the cost with you paying your copay.
Example of a Copay
Assume that you visit your primary care physician, and the total cost of the visit is $100. Also assume that you have already met your deductible. If your copay is 20%, then your insurance pays your doctor $80, and you are responsible for $20. However, if you have not met your deductible, then you could be responsible for the entire cost of the visit.