What is Premium in Health Insurance?

A health insurance premium is a monthly fee paid to an insurance company or health insurance plan to guarantee health coverage. The level of coverage itself (that is, how much you pay and how much you pay for health-related services, such as doctor visits, hospital stays, prescriptions, and drugs) varies significantly from health plan to health plan, and often, there is a relationship between the premium and the level of coverage. . The less you have to pay for your coverage, the more likely you will have to pay when you need medical care, and vice versa. In short, the premium is the payment you make to your health insurance company to keep coverage fully active. This is the amount you will pay to purchase your case. Bonus payments have a due date plus a grace period. If a premium has not been paid in full by the end of the grace period, the health insurance company may suspend or terminate insurance coverage. Other health insurance costs can include deductibles, coinsurance, and copayments. These are the amounts you pay when you need medical treatment. If you don't need treatment, you don't pay a deductible, copayments, or coinsurance. But you have to pay your premium every month whether you use your health insurance or not.

Example of Premium

Let's say you've researched the fees and health plans to find a plan that is affordable and right for you and your loved ones. After a long search, choose a specific plan that costs $ 400 per month. This $ 400 monthly fee is your health insurance premium. In order for all of your medical services to remain active, the health insurance premium must be paid in full each month. If you pay your premium yourself, your monthly bill will go directly to you. If your employer offers group health insurance, your employer pays the insurance premiums, although part of the total premium is likely to be charged to each employee through payroll deductions (most of them very high). The cost of their workers and they usually contract with an insurance company just to administer the plan. If you have an individual health insurance plan through the exchange and are receiving a premium grant, the government will pay the grant directly to your insurance company. You will be billed for the remainder of the premium and you will have to pay your share to maintain your coverage. You can also choose to pay the full premium each month and claim your full grant on your next spring tax return. (This is not a common option, but it is available and the choice is yours. If you are claiming the grant in advance, you will need to match it on your tax return using the same form you used to apply for the grant. Who Paid