
07/02/2025
🔥🔥🔥 HEALTH INSURANCE 101: WHAT IS A PREMIUM? 🤔
A premium is the monthly payment you make to keep your health insurance active—regardless of whether you use it. It helps cover medical services, administrative costs, and insurer profits.
Premiums vary based on your age, health, location, and the plan you choose.
But here’s the kicker: your premium isn’t the whole story. You may also have to pay deductibles, copays, and coinsurance when you actually use your coverage.
In 2024, the average monthly premium for one person in the U.S. is $456 ($5,472/year), and $25,572/year for a family—a 7% rise from last year (KFF*)!
Stay tuned as we unpack more health insurance terms in our Insurance 101 series. Because understanding your health insurance costs shouldn’t require a degree!
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Family premiums for employer-sponsored health insurance rose 7% this year to reach an average of $25,572 annually, KFF’s 2024 benchmark Employer Health Survey finds. On average, workers contribute $6,296 annually to the cost of family coverage. This marks the second year in a row that premiums are...