Health and finance go hand in hand. If you or someone in your family isn’t keeping well – you may visit your doctor and pay for the medicines prescribed. You may even visit the hospital for specific tests to be performed.

This running around not only impacts physically and mentally but also burns a hole in the pocket. Sometimes, you are the single source of income in your family, and medical emergencies increase the financial stress to you. 

Process of Co-paying

Co-paying under a health insurance policy means that you have to pay a certain part of the amount at the time of making a claim. The insurer covers the rest. The amount is usually fixed for certain medicines and services. It also varies depending on the type of treatment or medications required. 

For example, if your co-pay clause is for 10% and your medical expenditure has amounted to Rs.1,00,000, you will have to pay Rs.10,000 out of your pocket while the insurer will cover the remaining Rs.90,000.

Many of us usually confuse between co-payment and deductibles. A deductible is a fixed amount which the insured/patient has to pay every policy year before the health policy benefits begin to cover the expenses.   

Advantages of Co-Pay Health Insurance

• The major advantage is that you only have to bear a little cost. The insurer takes care of the majority of the amount. Understand that unnecessary claims will be avoided. 
• Different fixed amounts and charges depend on the medical service rendered. 
• Youngsters are less likely to fall prey to any severe illnesses, which ultimately allows them to get higher copay and reduce the premium amount.  
• Co-pay is mostly applicable to senior citizens in India, who are likely to fall sick periodically. 

Disadvantage of Co-Pay Health Insurance
If there is a considerable amount that you need to bear as co-pay, the whole purpose of the co-pay provision would be defeated. This may also lead to getting inadequate financial aid from the insurer in an emergency. 
 

So, is Co-pay beneficial for you?
Health insurance is much more than what a regular mediclaim policy offers. It offers more than just paying hospital bills. Hence, paying premiums towards health insurance acts as a safety net for you as well as your family. Better policies come at a higher premium cost; this cost can be discounted if you opt for a co-pay policy. 

A co-pay policy is beneficial if the insurer is in the best of health and excellent physical condition. In this case, you may not need to cash in the entire policy and may make use of the benefits that come with it. Today, many health insurance companies offer co-pay policies. Choose the one which is best suitable for your current as well as financial status.