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Understanding basic health insurance terms can help you choose the plan that may be the right choice for you.
Health insurance premium definition
A health insurance premium is a monthly fee you pay each month for having health insurance coverage.
What is a health insurance premium I can afford?
Before choosing a health plan, carefully consider:
- Your current health
- Your average annual health care costs
- Your available annual income for out-of-pocket medical expenses
Next, adjust your previous annual health care costs for any changes to your current health. If you have annual income available to pay potential out-of-pocket medical expenses, a plan with a low monthly premium may be the right choice.
Plans with low premiums often don’t begin providing coverage until you’ve paid out-of-pocket for a significant portion of your medical expenses. Other plans may have higher monthly premiums, but cover a larger portion of your medical expenses.
How do I pay my health insurance premium?
If you have an individual and family medical plan, you’re responsible for paying the full premium to your health insurance company each month. This may be the full premium or a portion of the premium not covered by federal financial assistance, if you qualify.
If you have a medical plan through work, your employer may pay a portion of your premium. You’ll be responsible for the remainder, which you can often arrange to have deducted from your pay check each month.
I have a Health Savings Account (HSA). Can I pay my premium from my HSA?
You cannot pay your health insurance premium with funds from your health savings account (HSA). These tax-free funds can only be used for out-of-pocket medical expenses.
How can I lower my health insurance premium?
If you have an individual and family medical plan (not through your work/employer), federal financial assistance may be available to help lower your out-of-pocket medical expenses and/or your premium. To find out if you qualify, visit www.healthcare.gov.
Understanding key health insurance terms can help you decide what health plan may be the right choice for you. Your monthly health insurance premium is an important factor to consider.