What does a premium refer to in health insurance?

In health insurance, a premium refers specifically to the amount of money paid to purchase the insurance coverage. This payment is typically made on a monthly, quarterly, or annual basis and is necessary to keep the insurance policy active. The premium is distinct from other costs associated with healthcare, as it represents the upfront fee required to gain access to the insurance benefits.

The other options describe different aspects of health insurance. The amount paid for benefits received pertains to out-of-pocket costs such as copayments or coinsurance, which are incurred when utilizing healthcare services. The total costs incurred by the member during treatment reflect the aggregate expenses associated with direct medical care but do not represent the cost of the insurance itself. Lastly, the deductible refers to the amount that a policyholder must pay out-of-pocket before the insurance plan starts to cover additional costs, which is another component but not the premium itself. Understanding that the premium is the foundational cost associated with obtaining health insurance coverage is crucial for managing health insurance policies effectively.