What does the term "premium" refer to in health insurance?

The term "premium" in health insurance specifically refers to the amount paid for an insurance policy, which is typically charged on a monthly basis. This payment secures your coverage and allows you to access the benefits specified in the policy. It's important to understand that the premium is distinct from other costs associated with health insurance, like deductibles or co-payments.

Deductibles are the amounts you pay out-of-pocket before your insurance kicks in, while co-payments are fixed amounts you pay for specific services, like doctor's visits or prescriptions. The premium is foundational to maintaining active insurance coverage, as it's essentially the cost of being enrolled in the health plan.