When you purchase a health insurance plan, you will pay a premium, which is a fixed monthly amount, much like you pay for car or life insurance. The premium is determined by the type of plan you have, as well as your age, your geographical location, and whether or not you use tobacco products. In addition, you may have to pay deductibles, copayments, or coinsurance amounts when you see your doctor or buy prescription drugs.
Generally, you will pay higher premiums for plans that include out-of-network benefits; plans that have low or no deductible, copayment, or coinsurance amounts; or both. You can choose to lower your monthly premium by purchasing a plan with a higher deductible. The type of plan you purchase should be determined by your anticipated health needs.