What is the main difference between a copayment and coinsurance?

The primary distinction between a copayment and coinsurance lies in how they are structured in relation to healthcare expenses. A copayment, which is a fixed cost, is a predetermined amount that a patient is required to pay for a specific medical service, such as a doctor's visit or a prescription medication. This amount remains consistent regardless of the total cost of the service, making it predictable for budgeting healthcare expenses.

In contrast, coinsurance involves paying a percentage of the total cost of a service after meeting deductibles. This means that the more expensive the service, the higher the out-of-pocket cost for the patient, as it directly corresponds to the service's overall price.

Understanding this difference is crucial for individuals navigating health insurance plans, as it impacts their financial responsibility and influences their decisions regarding care utilization.