What is the term for the fixed amount paid for a specific service in many insurance plans?

The term for the fixed amount paid for a specific service in many insurance plans is known as a co-pay. A co-pay is a set fee that an insured person pays at the time of receiving a particular service or medication. This amount can vary based on the type of service—such as a doctor's visit, specialist appointment, or prescription drug. Co-pays are designed to share the costs between the insured and the insurance provider, encouraging insured individuals to use healthcare services without the barrier of higher costs upfront.

Understanding co-pays is essential in managing healthcare expenses because they represent a predictable cost for specific services, making it easier for individuals to budget for their healthcare needs.