copayment

copayment 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. Copayments are a common feature of HMO (health maintenance organization) and PPO (preferred provider organization) health plans in the US. Copayment size may vary depending on the service; generally, low copayments are required for visits to a regular medical provider and higher copayments are required for services received in an emergency room, the latter intended to discourage insured persons from using the emergency room unless it is absolutely necessary. Also known as coinsurance.