What is co-pay in insurance?
Jan 18, 05:01

Co-payment is the percentage of the claim that the insured agrees to pay from his/her pocket irrespective of the claim amount. It usually varies from 10% to 30% and is mostly under senior citizen health insurance policies. The insurer only pays the balance claim amount.

The major difference between co-payment and deductible is that the co-pay is a percentage of the claim amount whereas the deductible is a fixed amount to be paid by the insured for each claim. The co-pay percentage is specified in the insurance policy. Policyholders have to pay out their co-pay or deductible amount before the insurer chips in with the rest.