Question

Which statement best defines the term copayment? A) It is money a consumer receives after experiencing a loss. B) It is a payment made before a consumer can make a claim. C)It is money paid by a consumer to share the cost of a payout. D) It is a fee paid to an insurance company to purchase coverage.

Answer 1

Answer:

it is money paid by a consumer to share the cost of a payout (c)

Explanation:

Answer 2

The correct answer is C. It is money paid by a consumer to share the cost of a payout.

Copayment is termed as the amount which is fixed which covers a service or being paid by a patient to the provider before the service is being received.

Mostly copayment occurs in insurance companies whereby the insured pays some amount of money before accessing to medical service.

In order to prevent moral hazard bu insurance company they use copayment so as to share the costs of health care.