What is co-pay


Can you tell me what is co-pay in a health insurance plan?



This is a cost-sharing requirement in a health insurance policy wherein the policyholder agrees to pay a specified percentage of the hospital expense while the rest is covered by the insurer. In case of co-payments, the premium charged by the insurer is usually lower. However, the insured sum remains the same.

So, under a co-payment clause, you will voluntarily share a fixed percentage of the medical expenses, thus reducing the chances of an unnecessary claim and fetching a discount on the premium for the insurer’s reduced liability. A voluntary co-payment clause helps you split your medical costs with your insurer. For example, if you opt for co-payment of 20%, the insurance company is likely to offer a discount on the premium. In this case, you will be paying 20% of the medical expenses that you might incur. Keep in mind that this feature may not be a part of all Health Insurance plans.

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BB Expert