Definition of Co-payment

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Co-payment: A payment made by an individual who has health insurance, usually at the time a service is received, to offset some of the cost of care. Co-payments are a common feature of HMO (Health Maintenance Organization) and PPO (Preferred Provider Organization) health plans in the US. Co-payment size may vary depending on the service, generally with low copayments required for clinic visits and higher payments for other services such as those received in an emergency department. Also called co-insurance.