What does the term "premium" refer to in health insurance?

The term "premium" in health insurance specifically refers to the amount that an individual or policyholder must pay to maintain their insurance coverage. This payment is generally made on a monthly basis, though it can also be annually or at different intervals, depending on the policy agreement. The premium is critical as it secures the insurance policy, ensuring that the insurance provider covers specified health services or expenses as outlined in the policy.

In contrast, the coverage amount refers to the financial protection that the insurance policy provides in terms of the maximum benefits for specific services, which is not the same as the premium. A deductible is a distinct feature that represents the amount the insured must pay out-of-pocket before the insurance starts to pay for covered services, and it is not a payment for the policy itself. Lastly, a copayment is a fixed amount that the insured pays for specific healthcare services, like doctor visits or prescriptions, and is not a reflection of the overall cost to maintain the insurance policy.