Article summarized from “The New York Times, Health Section”, written by Walecia Conrad, published July 9th 2010.
QUICK quiz: What’s the difference between co-pay and co-insurance
Many companies are considering increasing co-insurance payments by employees to cut the overall costs of health care benefits. If you’re like most people, you may think they are the same. But while it is true both terms refer to the portion of medical bills you pay out-of-pocket, these two types of cost-sharing are quite different
A co-pay is a fixed amount that you pay each time you see a doctor or fill a prescription, usually around $10 or $20. Co-insurance is the percentage of the cost of doctor visits, hospitalizations and prescription drugs that you must pay under your insurance policy. Let’s say your policy calls for 80/20 co-insurance. After you meet your deductible, you must pay 20 percent of your medical bills; the insurance company is responsible for the remaining 80 percent.
