What Is a Premium?

‍A premium is the fixed amount you pay for health insurance coverage, usually on a monthly basis. This cost is required to maintain coverage, regardless of whether you use medical services.

Why does a premium matter?

• Employer-sponsored plans: Employers often cover part of the premium, reducing out-of-pocket costs.
• Marketplace plans: Premiums vary based on coverage level and subsidies available under the Affordable Care Act (ACA).
• Medicare premiums: While Medicare Part A is typically premium-free for those who paid Medicare taxes for at least 10 years, Medicare Part B has a standard premium of $174.70 in 2024, with higher-income enrollees paying more. Medicare Advantage (Part C) and Part D plans also have separate premiums, depending on coverage.

How Solace can help

‍A Solace advocate can help compare insurance plans, explain premium costs, and check if you qualify for cost-saving programs for prescription drug costs, such as Medicare Savings Programs, Extra Help, or Marketplace subsidies.  

What to do next

Looking for ways to reduce your monthly healthcare costs? Find an advocate today.