The deductible is the amount that you need to pay as a share towards your medical bill upon which your policy comes into effect. It can be a fixed amount per the nature of treatment of a fixed percentage. Difference between Copay and DeductibleĬopay is the fixed amount that you have to pay towards your treatment. Then coinsurance will be levied on the sum of Rs.5000. Let us say you have a bill of Rs.10,000 and you have a deductible of Rs.5000. That means you’ll have to pay Rs.5000 towards your treatment before the policy can come into effect.Ĭoinsurance comes into effect once deductibles have been paid. So, you’ll have to pay just Rs.2000 while the balance of Rs.13,000 will be borne by your insurance company. Let’s suppose the bill is Rs.15,000 and your policy says the is Rs.2000. Understanding copay, coinsurance and deductibles using an example: Now that we have explained these terms mean for your insurance, let's also take you through the differences between each of these terms.
#COPAY VS DEDUCTIBLE FULL#
The percentage of coinsurance is about the out of the pocket maximum amount that you can spend in a year after which the company will bear the full expenses.Policyholders will have to pay the deductible before claiming coinsurance.This is usually a fixed percentage and is like copayment. otherwise, choose a higher deductible for lower premium payments.Ĭoinsurance refers to the percentage of a treatment cost you’ll have to pay once you’ve paid the deductibles. A lower deductible is recommended if you have a chronic medical condition that needs a regular visit to medical health professionals.Higher deductible means lower premium payment.Features of Deductibles in health insurance This is a certain amount that you have to pay towards your medical bills before your policy kicks into action. What do you Mean by Deductibles in Health Insurance?ĭeductibles are a fixed amount of money that you have to pay before your policy kicks in to take charge of your medical treatment. Co-payment amount/percentage is always fixed according to the service you are availing.The lower the copay, the higher is the insurance premium.Features of Co-payment in Health Insurance If you have a copay health insurance of 10% then you will have to pay Rs.1500, while the company will bear the expense of Rs.13500. This can be a pre-decided amount or a percentage of the total cost of treatment depending on the policy you choose. What is the Meaning of Co-pay in Health Insurance?Ĭopay or Co-payment refers to a fixed amount of money you need to pay for certain types of treatment when the rest balance amount will be paid to the insurer. In the following article, we will explain the meaning of copay, coinsurance and deductible. We will see what they mean together and how they are different. Terms such as copay, coinsurance and deductible, can be confusing for someone with limited knowledge to understand. Though it is quite confusing when it comes to buying insurance, for health insurance there is a set of certain terms that are hard to understand. When it comes to availing health care insurances and schemes, it is difficult to understand all the terms and their impact on the policy. Cashless Health Insurance Plans in India.
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