Premium
Updated for plan year 2026
In plain terms
A premium is the fixed amount you pay each month to keep your health coverage active, whether or not you use any care. It's separate from the deductible, copays, and coinsurance you pay when you actually get services. If you qualify for a premium tax credit through the marketplace, that subsidy lowers the premium you pay, sometimes to zero. Miss premium payments and the plan can be canceled, so it's the one health cost that comes due every month like rent.
A plain example
A silver plan lists a $450 monthly premium. You qualify for a $350 premium tax credit based on your income, so you pay $100 a month. Over a year that's $1,200 out of your pocket for the premium alone, before any deductible or copay, just to keep the coverage in force.
Why it matters
The premium is the number that's easiest to compare and easiest to over-weight. A rock-bottom premium usually buys a high deductible, so the cheapest plan each month can be the most expensive in a year you get sick. Weigh it against the deductible and out-of-pocket maximum, not on its own.
A common point of confusion
A lower premium doesn't mean a cheaper plan. The premium only buys access to coverage; what you pay when you use that coverage is set by the deductible, copays, and coinsurance, which often move in the opposite direction from the premium.