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| Healthcare policy in the U.S. |
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| Obamacare overview |
| Obamacare lawsuits |
| Medicare and Medicaid |
| Healthcare statistics |
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A premium is the price that an insured person or sponsor (such as an employer) pays regularly for an insurance plan. Premiums are typically paid monthly, but may also be paid quarterly or annually. The amount charged as a premium can vary from plan to plan and from person to person.[1]
The Affordable Care Act limited the factors insurance companies can take into account when deciding on a premium: (1) the age of the insured individual or individuals; (2) the location of the insured individual or individuals; (3) tobacco use; (4) whether the plan is for an individual or family; and (5) what benefits the plan covers. The law prohibited insurers to consider gender, current health status, or medical history when setting premiums. The law required all health plans to cover pre-existing conditions from the first day of coverage.[2]
In general, plans that cover more services or have lower deductibles tend to charge higher premiums; plans with higher deductibles that cover fewer benefits tend to have lower premiums.[2]
See also
External links
- Healthcare.gov glossary
- Kaiser Family Foundation, Average Monthly Premiums Per Person in the Individual Market
Footnotes
