Office Administrative Assistant Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The bill the patient receives in the mail for a predetermined amount that they pay monthly for health insurance is referred to as a premium. The premium is the cost of monthly health coverage that an individual pays to their insurance provider in exchange for health care benefits. It is an essential component of health insurance, ensuring that the insured have access to services covered under their plan.

Understanding premiums is crucial, as they represent the financial commitment individuals make to secure their health insurance, separate from other costs associated with healthcare services, such as deductibles and copayments. These other costs come into play when receiving care but are distinct from the initial payment responsible for maintaining insurance coverage.