What is the role of 'co-payments' in the patient billing process?

Co-payments play a critical role in the patient billing process as they represent fixed fees that patients are required to pay at the time of receiving medical services. This payment structure is designed to share the cost of healthcare between the patient and their insurance provider. The purpose of co-payments is to decrease overall healthcare costs by ensuring that patients have a financial responsibility, which can help encourage more responsible use of medical services.

Co-payments are predetermined amounts specified in the patient's insurance policy and can vary depending on the type of service received, such as a visit to a specialist versus a primary care provider. By requiring patients to pay a portion of their healthcare costs upfront, co-payments help facilitate immediate payment of services rendered, making the billing process smoother for both the provider and the patient.