What does the term "premium" refer to in health insurance?

The term "premium" in health insurance specifically refers to the amount paid for coverage, typically on a monthly basis. This payment is made to maintain the insurance policy and ensure that the insured individual has access to health care services and benefits once they are needed. Premiums are a fundamental part of health insurance, as they provide the financial support necessary for the insurance provider to cover medical expenses incurred by policyholders.

Other options describe related concepts but do not define a premium. The fee for a specific medical procedure pertains to costs associated with receiving care rather than the ongoing cost of maintaining insurance. The total annual cost of medical expenses includes various out-of-pocket costs incurred by the insured but does not represent the premium itself. Similarly, the deductible amount refers to what the insured must pay out-of-pocket before the insurance begins to cover certain medical costs, which is separate from the ongoing payment of premiums required for the policy.