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Current Annual Premium

What is a current annual premium?

In health insurance, a premium is a monthly fee a member must pay for a health insurance policy. Health insurance companies generally allow members to pay in different timeframes — if a member opts to pay in one large sum yearly rather than smaller payments every month, the member has an annual premium. A current annual premium is what it sounds like — the current amount a member pays each year for a health insurance policy.

Current annual premiums can result in significant expenses for policyholders — in 2021, the average American paid nearly $8,000 annually for health insurance coverage. However, current annual premiums are not the only cost associated with health insurance coverage. Members also need to consider copays (flat fees associated with certain medical services, such as physical examinations), coinsurance rates (what percentage of the bill a health insurance company covers when insurance is utilized), and deductibles (the amount a patient must pay out of pocket every year before coinsurance rates kick in).

Why are current annual premiums important in healthcare?

Current annual premiums are a helpful option for people who want to remove stress from their lives by paying for an entire year of health insurance upfront rather than worrying about monthly installments. Additionally, analyzing current annual premiums in different regions and demographic groups can provide holistic insight into the general trend of health insurance costs year over year, enabling researchers and public officials to devise and implement initiatives to potentially reduce costs for patients and make healthcare more accessible overall.