Final answer:
A Co-payment is a fixed fee patients pay for every prescription, which is part of the cost-sharing mechanisms used by insurance policies. These include deductibles, co-payments, and coinsurance, all of which aim to reduce moral hazard by making insured parties share in the costs.
Step-by-step explanation:
The cost-sharing plan in which patients pay a specified dollar amount for every prescription they receive is known as a Co-payment. This is a flat fee that must be paid for healthcare services at the time they are rendered. Co-payments are designed to share the cost of care between the insurance company and the insured individual, potentially reducing the utilization of unnecessary medical services.
Many insurance policies utilize a variety of cost-sharing mechanisms, including deductibles, co-payments, and coinsurance. Each serves to ensure that the insured party bears a portion of healthcare costs, thereby lessening the risk of moral hazard, where the insured might otherwise over-consume healthcare services because the insurance company would cover the full cost.