Copayment
Encyclopedia : C : CO : COP : Copayment
A copayment, or copay, is a flat dollar amount paid for a medical service by an insured. Insurance companies use copayments to share health care costs to prevent moral hazard. Though the co-pay is often only a small portion of the actual cost of the medical service, it is usually sufficient to prevent people from seeking medical care that may not be necessary (eg: an infection by the common cold), which can result in substantial savings for insurance companies.
See also
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