Co-pay

What it means

Co-payment means the policyholder pays a pre-decided percentage of the hospital bill. For example, with a 10% co-pay, the insurer pays 90% of eligible costs and you pay the remaining 10% from your own pocket.

Why it matters

• Plans with co-pay can have lower premiums, but claim-time costs are higher for you.
• Co-pay applies every time a claim is settled, so repeat claims increase out-of-pocket burden.
• Many buyers prefer no co-pay plans because insurance should reduce treatment-time financial stress.

Practical tips

• Check if co-pay is mandatory or applies only for certain ages, cities, or hospitals.
• Compare premium savings with likely claim expenses before accepting a higher co-pay.
• Read the policy wording to confirm the exact percentage and when it applies.