What is a health insurance premium?
The monthly price of having a plan, whether you use it or not.
Last checked October 15, 2026 · Written by licensed advisors · Sources are numbered and listed under Notes and sources
What is a health insurance premium?
A premium is the amount you pay for your health plan every month. You pay it even in months you never see a doctor. If you stop paying, the plan ends after a grace period: usually 3 months if you get a tax credit, otherwise set by your state.12
Premium vs deductible
The premium buys the coverage. The deductible is what you pay for care before the plan starts sharing costs. Premiums don’t count toward your deductible or your out-of-pocket maximum. A lower premium usually comes with a higher deductible.34
- Paid every month
- Buys the coverage
- Doesn’t count toward your deductible or maximum
- Paid when you get care
- Before the plan starts sharing costs
- Usually higher when the premium is lower
What sets your premium
On Marketplace plans, insurers can set prices only by your age, where you live, tobacco use, whether the plan covers just you or a family, and the plan category you choose. Your health doesn’t change the price.
A tax credit can lower it, based on your income and household size.5
- Your age
- Where you live
- Tobacco use
- Just you, or a family
- The plan category
- Not your health
Related guides
Obamacare Hotline and/or Medicare Po Polsku are private companies not affiliated with any local, state, or federal government agency. This guide is general information, not tax or legal advice.