What is the name of the periodic fee paid by a policyholder in exchange for health insurance coverage?

The periodic fee paid by a policyholder for health insurance coverage is known as a premium. This fee is typically billed on a monthly basis and is necessary to maintain the policy in force, ensuring that the insured individual has access to the benefits outlined in their health insurance plan. The premium is not dependent on the costs incurred by the policyholder during the coverage period; rather, it represents the upfront cost for obtaining and maintaining the insurance policy itself.

In contrast, a deductible is the amount that a policyholder must pay out-of-pocket before their insurance coverage kicks in for certain services. A copayment is a fixed amount that a policyholder pays for a specific medical service or prescription at the time of service, and coinsurance refers to the percentage of costs that a policyholder must pay for covered services after the deductible has been met. Understanding these terms helps clarify the different financial components involved in health insurance and the role of the premium in securing access to health coverage.