A premium is the amount you pay to have health insurance coverage.
It is commonly paid monthly, although payment arrangements can vary.
For example, if your monthly premium is $250:
$250 × 12 months = $3,000 per year
That $3,000 is the amount you pay for the insurance itself before considering other costs you may have when receiving medical care.
A plan with a lower monthly premium isn’t automatically the cheapest option overall. A lower-premium plan may have a higher deductible or higher costs when you use health care. HealthCare.gov recommends comparing estimated total yearly costs rather than looking only at the premium.
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