Final answer:
A tiered copayment is a type of copayment where the dollar amount varies based on the type of drug being dispensed, encouraging the use of lower-cost medications. Insurance companies may offer plans with higher copays to individuals with lower healthcare needs and plans with higher premiums but lower copays to those expecting more frequent healthcare services.
Step-by-step explanation:
The type of copayment that is a different dollar amount based on the type of drug being dispensed is known as a tiered copayment. In this system, drugs are categorized into tiers, typically with generic drugs in the lowest tier with the lowest copayment and brand-name or specialty drugs in higher tiers with higher copayments. This kind of copayment structure is designed to provide patients with financial incentives to choose lower-cost alternatives when available.
For customers with lower expected healthcare needs, an insurance company might offer a policy with a higher copay, which could also result in a lower monthly premium because the policyholder assumes more financial responsibility for each service. Conversely, an insurance company might offer a plan with a higher premium but lower copay to customers who expect greater healthcare usage, as it can reduce the overall out-of-pocket expenses for frequent services.