In health insurance, what is meant by "co-payments"?

Co-payments refer to a fixed amount that an insured individual pays for specific healthcare services at the time of receiving those services. This payment is separate from any deductibles or premiums and is a way for insurance companies to share the cost of medical care with their policyholders. For example, an insurance plan may require a $20 co-payment for a doctor's visit or a $10 co-payment for a prescription. This structure helps ensure that patients have some skin in the game, which can discourage unnecessary use of healthcare services while making it more affordable for individuals to access necessary care without the burden of large out-of-pocket costs.

In contrast, the other options do not accurately describe co-payments; they either relate to different aspects of health insurance or do not involve the concept of shared expenses for specific services.