What term denotes the amount paid periodically to maintain health coverage?

• A. Deductible
• B. Premium
• C. Co-payment
• D. Coinsurance

Answer: (B)

Premium is the amount paid regularly to keep health insurance in force. This is the ongoing payment you make to the insurer, usually every month, though it can be monthly, quarterly, or annually. It isn’t tied to using services; you pay it to maintain coverage regardless of whether you visit a doctor.

By contrast, a deductible is the amount you must pay out of pocket before the plan starts paying most benefits. A co-payment is a fixed amount you pay at the time you receive a service, like a visit or prescription. Coinsurance is the percentage of costs you pay after meeting the deductible.