Copayment is defined as:

• A. A fixed annual premium
• B. A fixed amount charged for a service at the time it's provided
• C. An amount the insured pays as a share of the cost after deductible
• D. A percentage of the total bill

Answer: (B)

Copayment is a fixed amount you pay for a covered service at the time you receive it. This payment is set by the plan and is paid regardless of the total bill, and it happens when you use the service, not as a share of costs after other amounts like deductible. For example, if your plan specifies a $20 copay for a visit, you pay $20 at the time of the visit and the insurance covers the rest according to the plan terms.

The other descriptions refer to different cost-sharing concepts: a fixed annual premium is what you pay to maintain the policy, not to receive a service; paying a share of costs after you’ve met a deductible describes coinsurance, where you pay a percent of the allowed amount after meeting the deductible; and a percentage of the total bill also describes coinsurance rather than a copay.