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.