What does co-pay refer to in the context of prescription costs?

Co-pay refers specifically to the portion of prescription costs that the patient is responsible for paying out of pocket at the time the prescription is filled. It is a predetermined fee that the patient must pay as a part of their health insurance plan. This fee can vary depending on the insurance plan, the type of medication, and whether the medication is generically approved or branded.

In the context of healthcare and pharmaceuticals, the co-pay is distinct from other financial terms related to insurance. For example, the total cost of the prescription would encompass both the co-pay and the amount covered by the insurance. The portion of costs covered by insurance indicates what the insurance company will pay, not what the patient pays directly. The deductible is a specific amount that the patient must pay before their insurance starts to contribute, which is different from a co-pay that’s due at the time of service. Understanding this distinction helps clarify the financial responsibilities of patients within their healthcare plans.