A copay is a small, fixed amount you pay for a health care service — like a doctor visit or a prescription — even after your insurance kicks in.

Tier 1 – Generic drugs

These are the lowest-cost drugs. They work the same as brand-name drugs but are much cheaper.

Tier 2 – Preferred brand-name drugs

Brand-name drugs that your insurance company prefers. They cost more than generics but less than non-preferred brands.

Tier 3 – Non-preferred brand-name drugs

These brand-name drugs are not on your insurance company’s preferred list, so they cost more.

In short:

Drug tiers help your insurance decide how much you pay for each medication. Lower tiers = lower cost to you.

A premium is the amount you pay every month to keep your health insurance active — even if you don’t go to the doctor or use any services.

Think of it like a subscription fee — just like you pay monthly for Netflix or your phone plan, you pay your insurance premium to stay covered.