What Is Medical Insurance Premium?

what is a medical insurance premium Last Updated: Jan 27, 2015 | By Kate Acuff
The many fees associated with medical insurance can be confusing. Premiums are the fees paid for medical coverage for a specific benefit period. In addition to premiums, other out-of-pocket expenses include co-payments and deductibles, all of which vary with the insurance you have.

Medical Insurance Premiums

As with car insurance or home insurance, a medical insurance premium is the cost of getting the insurance. Unlike car or home insurance, however, if you get your medical insurance through your employer as a benefit, your employer usually pays some or all of the premium

cost. As medical costs have increased, many employers have shifted more and more of the premium cost to their employees.

Premium Costs

According to the Kaiser Family Foundation and the Health Research and Educational Trust, in 2009, premiums for employer-sponsored health insurance rose to $13,375 annually for family coverage. On average, employees paid $3,515 and employers paid $9,860.

Those exercising their COBRA rights to continue in their employer’s medical insurance plan after leaving their job must pay the full premium cost.

Those purchasing insurance in the marketplace must pay the full premium price, which is even higher because they are not in a group plan.

Source: www.livestrong.com

Category: Insurance

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