What does co-pay refer to in health insurance?

Co-pay, or copayment, refers specifically to a flat fee that individuals are required to pay at the time they receive a covered medical service. This fee is predefined by the insurance policy and is part of many health insurance plans. For example, an insured person might have a $20 co-pay when visiting a doctor or a $10 co-pay for a prescription medication. This arrangement helps to share the cost of healthcare between the insurer and the insured, making it easier for policyholders to budget for their healthcare expenses.

In contrast, the other options represent different aspects of insurance costs, such as annual fees or percentages related to uncovered services, which do not align with the definition of a co-pay. Therefore, understanding that a co-pay is a fixed amount required for a service clarifies its role in the overall structure of health insurance planning.