Health Insurance Premium
Health Insurance Premium: A health insurance premium is the amount of Money that an individual or employer pays to an insurance company to obtain health insurance coverage. This payment is typically made monthly, but can also be paid quarterly or annually. The premium is one of the main costs associated with health insurance and can vary based on several factors including the type of plan, coverage level, and the insured person’s age and health status.
Examples:
- A 30-year-old individual purchasing a basic health insurance plan may pay a premium of $300 per month.
- A family of four with a more comprehensive plan might have a monthly premium of $1,200.
Cases:
- If an employer offers a group health insurance plan, they might cover a portion of the premium, such as paying 70%, while the employee pays the remaining 30%.
- In some cases, a person may qualify for a Subsidy under the Affordable Care Act, which can lower their monthly premium based on their income level.