Covered California Certified Enroller Practice Exam

What does a consumer pay monthly for their health insurance plan?

1. Deductible

2. Coinsurance

3. Premium

4. Copayment

The correct answer is: Premium

The monthly payment a consumer makes for their health insurance plan is known as the premium. This is a fixed amount that individuals or employers pay regularly, typically on a monthly basis, to maintain their insurance coverage. Paying the premium ensures that the insured has the financial protection in place for healthcare services covered by their plan. Understanding the other terms is essential to see how they differ from the premium. A deductible refers to the amount a consumer must pay out-of-pocket for healthcare services before their insurance kicks in. Coinsurance is the percentage of costs a consumer shares with their insurance after the deductible has been met, meaning it represents a part of the expenses rather than a monthly payment. Lastly, a copayment, or copay, is a specific fee paid for certain services, like a doctor's visit or prescription, which is also distinct from the regular premium payment.