Final answer:
A co-payment is the specified dollar amount that patients pay for every prescription received under a health insurance policy. It's one of several cost-sharing strategies to reduce moral hazard and encourage prudent use of medical services.
Step-by-step explanation:
The cost-sharing plan in which patients pay a specified dollar amount for every prescription received is known as a co-payment. This is a common feature in health insurance policies where the insured party pays a flat fee, such as $10 or $25 per prescription, before the insurance covers the remaining costs. Co-payments, along with deductibles and coinsurance, are mechanisms to reduce moral hazard by ensuring that individuals share in the cost of their healthcare expenditures. These cost-sharing responsibilities encourage more judicious use of medical services as patients are directly contributing to the cost.