Define "copayment" in health insurance.

A copayment, often referred to as a copay, is a fixed fee that a policyholder is required to pay for a specific healthcare service at the time the service is received. This means that when you visit a doctor or receive certain health services, you pay a predetermined amount as specified in your health insurance policy. For example, you might have a $20 copayment for a doctor’s visit or a $10 copayment for a prescription medication.

This structure helps to manage costs for both the insurer and the insured, as it ensures that the policyholder shares in the expense of their healthcare services. Copayments can vary based on the type of service or provider, and they are typically stated in the insurance policy documents.

In contrast, the other options define components of health insurance that don’t align with the term "copayment." Choices related to percentage allocations or total amounts do not capture the essence of a copayment being a set fee paid out-of-pocket at the time of service, which is what distinguishes it in healthcare financing.