Zest Staff
Industry News

What is a premium?

When it comes to health insurance, you’ll see different terms describing different amounts you’re expected to pay. Keeping them straight is no easy task. Here’s a quick refresher:

  • Copay
    Your copay is the fixed amount set by your insurance plan you pay out-of-pocket for certain provider visits. It’s common to have a set copay for your PCP, specialists, and prescription drugs. Copays don’t count toward fulfilling your deductible.
  • Deductible
    Your deductible is the amount of money you pay out-of-pocket before your insurance benefits kick in. Depending on your plan, you can get certain preventative services before you’ve met your deductible.
  • Coinsurance
    Coinsurance is a percentage of healthcare costs you’re responsible for once you meet your deductible.

Here’s another term to add to your health insurance vocabulary: premium. Your premium is the amount you pay monthly to keep your healthcare benefits. This payment doesn’t count toward your deductible. Consider it more like a membership fee associated with your insurance company.

Often, your deductible amount is linked to your premium. If you have a higher monthly premium, you’re more likely to have a smaller deductible and fixed copays. Smaller monthly premiums are often associated with high deductible health plans.

Whether you’re enrolled in a high deductible health plan or not, contact the Zest concierge in the Zest app or at 866.333.4725 to learn ways to save.

Zest Staff
Helping folks navigate their healthcare, so benefits are actually beneficial.