Premium

A premium is what you pay to keep your health insurance. You usually pay it every month, whether or not you get care. If your coverage comes through work, your share is often taken out of your paycheck.

Your premium is separate from what you pay when you get care. Deductibles, copays, and coinsurance come on top of it. Premiums also don't count toward your out-of-pocket maximum. If you buy a Marketplace plan, you may qualify for a premium tax credit that lowers this cost.

For example, a plan with a $300 monthly premium costs $3,600 a year before you get any care. A plan with a $450 premium costs $5,400 a year, but it might have a much lower deductible. So the lowest premium isn't always the lowest total cost. Our guide to choosing a health plan shows how to compare plans by yearly cost.