What is the difference between a deductible and a copayment in health insurance?

• A. Deductible is paid after coverage; copayment is fixed before deductible
• B. Copayment is paid before coverage; deductible is fixed after deductible
• C. Deductible is a fixed amount per service; copayment is a fixed amount per service
• D. Deductible is the amount you pay before coverage; copayment is a fixed amount paid for a service after deductible

Answer: (D)

Deductible is the amount you pay out of pocket before your health plan starts covering services. A copayment is a fixed fee you pay for a specific service when you receive it, typically after you’ve started using coverage (i.e., after meeting the deductible in many plans). So the statement that the deductible is the amount you pay before coverage begins, and the copayment is a fixed amount paid for a service after the deductible is met, accurately captures how these two features work. For example, you might pay up to your annual deductible, and once that amount is reached, you’d pay a fixed copayment (like a set dollar amount) for a visit or service. The other descriptions don’t reflect the usual timing and structure of these payments.