What is Premium Health Insurance? Top 5 Benefits

Premium Health Insurance

Premium Health Insurance

Premium health insurance is the amount you pay for the insurance related to your health. In order to keep the health insurance policy active a health insurance premium is paid on behalf of an individual or family. It is paid every month when purchased on the individual market. You can also pay your portion of the premium through payroll deductions if you receive insurance through your employer. There are other costs of health care that are additional like out-of-pocket costs-deductibles, co-pays, and coinsurance.

What is Premium Health Insurance – For Your Deeper Understanding

The health insurance premium is the amount you pay to keep your policy in force, usually on monthly basis. If you skip your payment of the premium, the insurer will drop your healthcare coverage.

To receive medical care, a health insurance premium is not the only expense you incur. Even after paying the fee on monthly basis, you may have to incur out-of-pocket expenses based on the type of care and the amount you receive. These include:

  1. Deductibles: It is the medical bill amount you have to pay before your insurance starts paying claims.
  2. Copays: It is a fixed amount you have to pay for expenses such as visiting the doctor and drugs prescribed at the time of service. The provider of the insurance pays all, or part of, the remaining amount.
  3. Coinsurance: A medical bill percentage you have to pay, even after reaching your deductible. The insurer pays the remaining portion.

Top 5 Benefits

Premium Healthcare Insurance in the United States is very expensive. It may cost several hundred dollars for a single doctor’s office visit and an average three-day hospital stay can run thousands of dollars or even more than that depending on the type of care provided you.

  1.  Most of us could not afford to pay such a large amount if we get sick, especially since we don’t know when we might become injured or seriously ill or how much care we might need during the sickness. Premium health insurance offers a way to reduce such costs to more reasonable amounts.
  2. It happens that some years you may need more medical services, other years you may need less, the whole point of having premium health insurance is so you need not pay the full cost of medical services on your own.
  3. When you need health care, you along with your health insurer share the covered medical costs.
  4. For the risk pool, if your medical costs are high, your health insurer may have to adjust the rates for those insured.
  5. One of the things the US health care reform has done under the Affordable Care Act is to employ standardization to insurance plan benefits. Before it, the benefits offered varied drastically depending on the plans. For instance, some plans covered prescriptions while others did not. Now, plans in the U.S. offer a number of health benefits that are essential which include:
    • Emergency services
    • Laboratory tests
    • Maternity and newborn care
    • Hospitalization
    • Mental health and substance abuse treatment
    • Pediatric services, including dental and vision care
    • Prescription drugs
    • Rehabilitation services
    • Outpatient care

Services that are preventive like immunizations and chronic diseases management.

Health Insurance Premium Deduction self-employed

For some, premium health insurance is the largest monthly expense. It makes them wonder what medical expenses are tax-deductible to reduce their bill. As the healthcare price rises, some look for ways to minimise their costs through tax breaks on their monthly premiums of health insurance.

If you have an employer-sponsored health insurance plan, your premiums may be tax-free. If a payroll deduction plan is a way through which you pay premiums, they are likely to be made with pre-tax dollars, so you would not be allowed to claim a deduction in the year-end tax.

However, you can still claim a deduction if your total healthcare costs for the year are high. Individuals who are self-employed may be qualified to write off their health insurance premium, but only if they meet certain criteria.

Annual Premium Health Insurance

How much does premium health insurance cost? Across the US, Americans pay wildly different premiums on a monthly basis for their health insurance. These premiums are not identified by gender or pre-existing health conditions, thanks to the Affordable Care Act, a number of other factors impact what you pay.

How much you’ll pay for insurance isn’t a number you can make a guess. It’s affected by many factors, few of which are in your control.

If you’re buying a health insurance plan through the website Healthcare.gov, you can use the tools of the government for estimating you’ll qualify for which subsidies. If you’re buying insurance through your employer, review your open enrollment information as soon as it’s available so you have plenty of time to review the options you choose, attend any information sessions, and use any tools of comparisons your employer offers to help you pick the most feasible plan you can afford.


1. How much is premium health insurance?

Answer: In the USA, different premiums are paid for monthly health insurance. Factors like state and federal laws, living factors, whether the insurance you get is through the employer, and the type of plan that you choose.

2. Is health insurance premium monthly or yearly

Answer: The cost varies, personal choices, as well as age, income, location, number of family members, are included in your coverage, health care use – factor into your actual health insurance cost.

3. What is minimum premium health insurance?

Answer: Minimum premium plan where the employer and the insurer agree that the employer will pay all claims up to an agreed-upon aggregate level, with the insurer responsible for the excess. The insurer is responsible for processing claims and administrative services.