The monthly fee you pay to have coverage — whether you use it or not.
Your health insurance premium is the fixed amount you (and/or your employer) pay every month to maintain your health insurance coverage. Think of it as a membership fee.
Unlike your deductible or copays, which you only pay when you receive care, your premium is due every month — whether you visited a doctor that month or not. It's the cost of having the coverage available to you.
If you get insurance through work, your employer typically pays a significant portion of the premium — often 70–80% — and deducts the rest from your paycheck pre-tax. What you see on your pay stub is just your share.
People often compare plans by monthly premium alone — that's a mistake. A lower premium usually means a higher deductible, higher out-of-pocket maximum, or narrower network. The premium is just one variable in the total cost equation.
Add up: (monthly premium × 12) + estimated out-of-pocket costs for the year. That's your real annual cost for each plan option. For healthy people who rarely see doctors, a high-deductible/low-premium plan often wins. For people with ongoing care needs, a higher premium with lower cost-sharing may cost less overall.
Insurers adjust premiums annually. Your employer may also shift the employee/employer split from year to year. Always review your new premium during open enrollment rather than assuming it's the same as last year.