What is the difference between co-insurance and co-payment?
These terms are often confused and used interchangeably. However, they are two different means of cost sharing of medical expenses. A co-payment or co-pay is a set dollar amount ($10, $20, $30) the insured is required to pay at each encounter for certain medical services such as a doctor’s visit or Emergency Room visit. Co-payments are also often called Encounter Fees. Co-payments are a common feature of HMO and PPO arrangements. Co-payments are now also common in prescription drug plans.
