What are premiums in health insurance?

Premiums in health insurance refer to the amount paid for coverage, typically on a monthly basis. This payment is essential to maintain the policy and ensures that the insured individual remains eligible for the benefits outlined in their health insurance plan. Premiums are distinct from other costs associated with healthcare, such as deductibles, copayments, or coinsurance, which are additional expenses incurred when accessing healthcare services.

By paying the premium, policyholders secure their health insurance coverage and gain access to medical services as specified in their policy. This fundamental concept of premiums is a critical aspect of health insurance, as it sets the foundation for the financial relationship between the insured and the insurance provider. Understanding premiums helps individuals and families budget for their healthcare needs and make informed decisions about their insurance options.