Final answer:
A co-pay is a fixed amount that an individual has to pay out of pocket for a specific healthcare service. Other related terms include deductible and co-insurance.
Step-by-step explanation:
A co-pay is a fixed amount that an individual has to pay out of pocket for a specific healthcare service, such as a doctor's visit or a prescription medication. It is a form of cost-sharing between the insurance company and the insured person. For example, if your co-pay for a doctor's visit is $20, you will pay $20 at the time of the visit, while the insurance company covers the remaining cost.
Other terms related to third-party insurance plans include deductible, which is the amount that the insured person must pay before the insurance company starts covering the costs, and co-insurance, which is the percentage of costs that the insured person is responsible for paying after the deductible is met.