What is the premium in health insurance?

• A. Monthly fixed charge regardless of services
• B. Monthly payment into insurance pool by member and/or employer
• C. Out-of-network surcharge
• D. Annual deductible

Answer: (B)

Premium is the regular, recurring payment to keep health coverage active, typically paid monthly by the member and sometimes contributed to by the employer, funding the insurance pool so coverage remains in force whether or not you use services. This distinguishes it from amounts tied to specific care. An out-of-network surcharge is a charge for using providers outside the plan, not the ongoing fee for coverage. The annual deductible is the amount you pay out-of-pocket before the plan starts paying for services. A monthly fixed charge describes a recurring fee, but the standard definition centers on the payment into the insurance pool by member and/or employer to maintain the policy.