What is the difference between 'co-insurance' and a 'co-payment'?

Cost-sharing in health insurance has three main components, often confused. Deductible: the amount the insured pays out of pocket before the plan begins to share costs (e.g., $1,500). Co-payment (copay): a fixed dollar amount paid per service (e.g., $30 for an office visit, $150 for an emergency room visit). Co-insurance: a percentage of the cost the insured pays after the deductible is met (e.g., 20% of the bill, with insurance paying 80%). Out-of-pocket maximum: the most the insured can pay in a year; once reached, the plan pays 100%. Understanding these mechanisms helps the insured estimate their actual cost for care and compare plans. Plans with lower premiums often have higher deductibles, copays, and co-insurance.