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Your health insurance premium is simply the amount you pay each month to keep your insurance coverage active.
But Wait, There's More Than Just the Premium
While your premium is a significant cost, it's not the only expense you'll have. You'll typically also need to pay:
- A deductible (the amount you pay before insurance kicks in)
- Copayments (fixed amounts for specific services)
- Coinsurance (your percentage of the costs)
Marketplace Plans and Saving Money
If you have a Marketplace health plan, here's some good news: you might qualify for a premium tax credit that can lower your monthly costs.
Choosing the Right Plan
Here's a common mistake to avoid: don't automatically choose the plan with the lowest monthly premium. Why? It might cost you more in the long run.
Consider this:
- If you need frequent medical care, a slightly higher premium but lower deductible plan might save you more money.
- Look at the total potential costs, not just the monthly premium.
IMPORTANT REMINDER
Once you choose your plan, remember to pay your first premium. Your premium is just one piece of the health insurance puzzle. Take time to understand all the costs and choose a plan that fits your healthcare needs and budget.