Copay vs. Coinsurance vs. Deductible – What’s the difference?

The words copay, coinsurance, and deductible are used a lot, but what do they actually mean?

A deductible is the amount of money you pay before your insurance starts to pay. For example: your insurance might have you pay $2000 for medical costs before they start paying their part.

A copay (or copayment) is a set amount you pay when you go to the doctor or pharmacy. For example: you might pay $20 every time you see your doctor or $5 every time you pick up a medicine. Sometimes you can see your copay on your insurance card.

Most plans have deductibles and copays. Sometimes your copays count towards part of your deductible.

Coinsurance is how much of the cost you will pay after you have paid the deductible. For example, you might be responsible for 20% of costs, while insurance will cover 80% of costs. Coinsurance tells you how the cost is shared between you and your insurance company.

If you have questions about your insurance plan, you can always give your insurance company a call!