Glossary

Copay vs coinsurance

Two different forms of patient cost-sharing under an insurance plan. A copay is a fixed dollar amount the patient owes per visit regardless of the total allowed amount (for example, $30 per office visit). Coinsurance is a percentage of the allowed amount the patient owes after the deductible is met (for example, 20% of the $180 allowed amount). Both are collected from the patient, not from the payer.

Reviewed by Stanislav Sukhinin, CFALast reviewed April 10, 2026

Why this matters for your clinic

The distinction matters for your patient collections workflow. Copays are predictable and should be collected at the point of service. Coinsurance amounts depend on the allowed amount and cannot be precisely calculated until the claim is adjudicated, which means they are often billed after the fact. Point-of-service collection rates for coinsurance are lower than for copays because the amount is not known at check-in.

Your payer mix determines your overall patient responsibility exposure. High-deductible health plans (HDHPs) have replaced traditional copay plans in much of the commercial market. Under HDHPs, patients owe the full allowed amount until the deductible is met, which makes patient collections look more like consumer collections than traditional copay collection. Practices that have not updated their patient financial counseling and collections processes for HDHP prevalence are experiencing rising patient bad debt.

Deductible status at the time of service is a key eligibility check. Collecting a $30 copay from a patient who has not yet met their $2,500 deductible is an undercollection. A proper eligibility verification process checks deductible status and estimates patient responsibility at the time of scheduling so collections expectations can be set before the visit.

What good looks like

MGMA data and TransUnion Healthcare surveys have consistently shown that the probability of collecting a patient balance drops sharply when it is billed after the visit: estimates range from 50-60% collection rates on balances billed after service versus 90%+ when collected at the point of care. This is the financial case for investing in real-time eligibility verification and point-of-service collection training.

Example

A patient has a PPO plan with a $1,500 deductible and 20% coinsurance after the deductible. They come in for a visit in March (deductible not yet met). The allowed amount is $165. The patient owes $165 (the full allowed amount, applied to deductible). If the front desk only collects a $30 copay, the practice undercollects $135 at point of service and must bill the balance afterward, reducing the likelihood of full collection.

From Sorso

In the practices we onboard, patient responsibility collected at point of service versus billed afterward is a ratio that almost always has room for improvement. A focus on pre-visit deductible verification and point-of-service collection scripts typically moves this ratio meaningfully within 60 days.

SS
Stanislav Sukhinin, CFA

Founder of Sorso. 19 years in corporate finance. Managed a $450M loan portfolio before building a fractional CFO firm exclusively for healthcare clinics.

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