Understanding what terms like deductible, co-pay, and policy limit mean can help you understand what you're paying for and what you're covered for. What is the meaning of co-pay in insurance?
the maximum amount the insurance company will pay for a claim
(Choice B) the amount the insured must pay out of pocket before the insurance company will pay for a claim
B
the amount the insured must pay out of pocket before the insurance company will pay for a claim
(Choice C) an amount the insured must pay each time they receive a service that is covered by their insurance policy
C
an amount the insured must pay each time they receive a service that is covered by their insurance policy
C
The correct answer is C: an amount the insured must pay each time they receive a service that is covered by their insurance policy.
A co-pay is a fixed amount that the insured person must pay out of pocket at the time of receiving a covered service. It is a cost-sharing mechanism where the insured shares the cost of the service with the insurance company. The insurance company then covers the remaining portion of the bill.
For example, let's say you have health insurance and you visit your doctor for a routine check-up. Your insurance policy may require you to pay a $30 co-pay for each doctor's visit. So, when you check-in, you would pay $30 upfront, and the insurance company would cover the rest of the bill.
Co-pays can vary depending on the type of service or provider you visit, such as primary care, specialist, or emergency care. It's important to understand your insurance policy and be aware of the specific co-pays associated with different services.