Definition of "Copayment"

Another way of sharing medical costs. You pay a flat fee every time you receive a medical service (for example, $5 for every visit to the doctor). The insurance company pays the rest.

In health insurance, this is the percentage the insured pays toward the cost of covered services or a flat fee charged by an HMO or other managed care plan for certain services, such as doctors' office visits, hospital stays or prescription drugs.