A premium is the monthly amount you have to pay to keep your health care plan’s coverage active. Your plan’s premium may range in price from $0 a month and up, depending on the type of plan you have.
While it is common for individuals to look at health plans with the lowest possible premium, we encourage our clients not to assume the lowest cost plan is the right option. Depending on the level of health care you require, a plan with a higher monthly premium and lower out of pocket expenses could end up saving you a lot of money.
In addition to a premium, there are other costs to consider, like deductibles, copayments, and coinsurance. All of these costs should be evaluated as you decide what plan is going to meet your lifestyle and your needs. Working with a health insurance expert can help you forecast how these costs will impact your retirement health care budget.