Advantages and Disadvantages of Instituting Copayments

Advantages

• May reduce unnecessary use of medical care.
• Can be tailored to accomplish specific purposes, e.g., high copayment for ER, but none for preventive services.
• Can supplement provider payments.

Disadvantages

• May act as a barrier to needed care.
• May cause reductions in use of cost-effective services in addition to expensive services.
• Could reduce provider payments if copayments constitute a portion of the provider’s fee and the provider is responsible for collecting payment.

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Who presented this material?

• Judith Arnold and Leighton Ku, Ph.D., M.P.H.