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Term One: Premiums Copy

A PREMIUM is a fixed monthly fee paid to an insurance company in exchange for health coverage.

Plans, premiums, and costs change annually. Traditionally, in the fall each year, both employers and individuals shop for plans and then select new plans or keep an existing policy intact. If you shop at Healthcare.gov, your choice must be made by December 15th each year. Expect the premium always to increase annually. Even if your plan name stays the same, there may be slight shifts in coverage offered, so you will need to read your policy annually to remain aware of the changes.

Traditionally, HMO (Health Maintenance Organization) plans have lower premiums and lower out-of-pocket expenses but only in-network. PPOs (Preferred Provider Organizations) tend to have higher premiums but offer more choice for your care.