Copayment | TRICARE.com

A copayment, or copay, is a fixed amount a patient pays for a healthcare service, with the remaining cost covered by their insurance provider. This payment model is designed to share healthcare costs and prevent moral hazard, where patients overutilize services because they are fully covered by insurance. Copayments can vary widely depending on the type of service, the patient's insurance plan, and the provider. Some plans may have a $0 copay for preventive services, while others may have a $50 copay for specialist visits. The use of copayments is not limited to the United States, with countries like Canada and Australia also implementing similar payment models.