What is an insurance copay?
Copay is not the same as coinsurance (mentioned under What Are the Factors that Affect My Premium) and does not pertain at all to short-term medical insurance. But, here is what it is: if you had a permanent medical insurance policy which included a copay feature, you would pay a small amount for receiving delivery of medical service and the insurance company would pay the rest. For example, with permanent insurance you might choose to have a policy that provides for you to pay $25 to the doctor when you go there – the rest of the cost of the visit to be paid by the insurer. Leaving copay out of short-term policies is another way that the insurance company is able to offer lower premiums because it has avoided the smaller claims and the administrative expenses of dealing with them.
