Which type of cost sharing requires patients to pay a fixed amount per visit or service?

The concept of a copayment is integral to understanding how health insurance plans structure cost sharing between insurers and patients. A copayment, or copay, is a fixed amount that a patient pays for specific medical services or visits, such as a doctor's appointment or a specialist visit. This fixed fee is predetermined by the insurance policy and is paid at the time of the service.

This type of cost-sharing is beneficial for both insurance providers and patients. For insurance providers, it helps control healthcare costs by reducing the likelihood of unnecessary services, as patients may be more selective when incurring out-of-pocket expenses. For patients, it provides predictable costs for healthcare services, which can aid in budgeting for healthcare expenses.

In contrast, the other concepts mentioned have distinct definitions. A pricing strategy generally refers to how healthcare services are billed or priced overall. A deductible is the amount that a patient must pay out-of-pocket for healthcare services before their insurance begins to cover costs, which is generally variable rather than a fixed per visit amount. Premium sharing involves sharing the cost of the insurance premium itself between the employer and the employee, not a specific service or visit.

Understanding the role of copayments in healthcare finance is crucial, as they impact both patients' access to care and overall