What Are the Different Types of Copay Assistance?

Copay assistance is a type of financial service that is offered to aid individuals is managing the copay obligations that are included in many forms of insurance protection. Primarily, the types of copay assistance include receiving grants in order to offset those expenses, or arranging loans that allow those individuals to provide the copays and then repay the loans within terms they can more easily afford. Both approaches normally call for the applicant to meet criteria set by the foundation or other institution that is extending the grant or loan.

One of the more common types of copay assistance is in the form of grants offered by foundations set up to assist insured parties with the copays required as part of the insurance coverage. This particular approach to helping manage insurance copays provides the recipient with the chance to obtain the financial aid without requiring any type of repayment at a later date. Most foundations offering this type of copay assistance set aside a specific amount of money each annual period and allocate those grant funds based on the assessments of each application that is presented. Typically, the grant money is sent directly to the insurance company, along with documentation to indicate which copay the payment is covering.

A different approach to copay assistance is the copay loan. This type of loan is usually extended by different types of lending institutions, and allows qualified applicants to borrow the money necessary to cover copay costs associated with the insurance coverage. With this arrangement, the applicant must meet the standards set for receiving a loan and agree both to repay the amount borrowed along with the rate of interest specified in the loan contract and to make periodic payments on that loan based on the schedule included in the contract provisions. While this approach does require repayment over time, the copay loan provides the insured party with the chance to cover the cost of the copays and remove any barriers to claiming all the benefits provided in the policy terms.

With any type of copay assistance, there is a need to provide the grantor or lender the information necessary to verify the amount of the copay and to determine if the applicant meets the criteria necessary to receive the assistance. This will typically include full disclosure on sources of income, current debt levels, verifiable statements from physicians regarding the health of the applicant, proof of treatment, and a copy of the insurance policy involved. Once the application is qualified and evaluated, an offer for a specific amount of assistance is presented to the applicant. While this amount may cover the total cost of the copay involved, the offer may only provide partial assistance, based on the availability of funds and the level of need determined by the grantor or lender.