A copayment, or copay, is a fixed amount that a patient pays for a covered healthcare service before receiving the service. It is a form of cost-sharing between the individual and their insurance company, where the insurer covers the remaining portion of the medical expense. Copays are usually defined in an insurance policy and paid by an insured person each time a medical service is accessed. They are technically a form of coinsurance, but are defined differently in health insurance where coinsurance is a percentage payment after the deductible up to a certain limit. Copays must be paid before any policy benefit is payable by an insurance company.

Copays do not usually contribute towards any policy out-of-pocket maximum, whereas coinsurance payments do. Copays are more common with managed care plans, such as HMOs, where insurance companies offering these plans have contracts with healthcare providers that let them pay fixed fees for essential services. Copays are a way of keeping monthly medical bills in check by splitting the cost of medical services between the insurance company and the policyholder.

The amount of copay can vary by the type of service. Copays are usually the responsibility of the policyholder, and they are paid at the time of service. Copays cover the individuals portion of the cost of a doctors visit or medication. Copays are more common with managed care plans, such as HMOs.

Copays typically count towards the deductible in most health insurance plans. Once the deductible is met, the insurance coverage may change, such as transitioning to coinsurance, where the individual pays a percentage of the cost of covered services rather than a fixed copayment.