How is "copayment" defined in insurance terminology?

In the context of insurance terminology, "copayment" refers to a fixed contribution that an insured individual is required to pay for each medical service accessed. This means that whenever a policyholder receives services such as visiting a doctor, filling a prescription, or other types of medical care, they pay a predetermined amount out-of-pocket at the time of the service. This arrangement helps share the cost of healthcare between the insurer and the policyholder, making healthcare usage more manageable for the insurer.

The other choices do not accurately describe the concept of copayment. One-time payments for policies and annual premiums pertain to the initial financial commitment to secure insurance coverage, while deductibles are the amount a policyholder must pay out-of-pocket before the insurance kicks in for further medical expenses. Thus, the definition of copayment focuses specifically on the per-service payment structure within a healthcare plan.