Premium

What is a health insurance premium?

A health insurance premium is the fixed dollar amount that you pay for health insurance coverage. Usually you will see the premium amount described as a monthly cost.

Healthcare premiums are the primary maintenance cost of health insurance.

Like auto insurance, your health insurance premium is charged whether or not you have claims. So if you do not visit a doctor all year, you will still need to pay your premium.

How premiums are calculated

As people age, their health care costs increase. More medical treatments translate to greater claims, and a greater likelihood for loss to your insurance carrier. Therefore, older people pay higher health insurance premiums than young people.

Additionally, your geographic location is used to calculate your insurance premium. Health insurance carriers have substantially different costs across metropolitan areas for local medical providers, hospitals, and doctors.

Lower my insurance premium

The best way to lower your insurance premium, and save on insurance costs, is to select a plan with a higher deductible. A higher deductible plan means that you will pay for your initial claims out of your pocket, though this approach will generally save you significant money. Use the SuperAgent tool to compare your savings across high deductible plans to find the best value.