Which term describes the amount a client pays at the time of service before insurance covers the rest?

Which term describes the amount a client pays at the time of service before insurance covers the rest?

• A. Copay
• B. Deductible
• C. Coinsurance
• D. Premium

Answer: (A)

A fixed payment due at the time of a covered service is called a copay. It’s the amount you pay upfront when you receive care, and the insurance covers the remaining allowable charges according to your plan. For example, if your visit has a $25 copay, you pay $25 at the time of service and the insurer pays the rest of the allowed amount, subject to plan rules. This differs from a deductible, which is the total amount you must pay out-of-pocket before the insurer starts paying for covered services. It also differs from coinsurance, which is the percentage you pay of the costs after the deductible has been met. Premium is the regular payment you make to maintain coverage, not tied to a single visit.

A fixed payment due at the time of a covered service is called a copay. It’s the amount you pay upfront when you receive care, and the insurance covers the remaining allowable charges according to your plan. For example, if your visit has a $25 copay, you pay $25 at the time of service and the insurer pays the rest of the allowed amount, subject to plan rules.

This differs from a deductible, which is the total amount you must pay out-of-pocket before the insurer starts paying for covered services. It also differs from coinsurance, which is the percentage you pay of the costs after the deductible has been met. Premium is the regular payment you make to maintain coverage, not tied to a single visit.