AHIP Practice Exam

A premium in health insurance refers specifically to the amount of money that an individual or employer pays to an insurance company on a regular basis, typically monthly, in exchange for health coverage. This payment secures the policyholder access to healthcare services and financial protection against high medical costs.

Understanding this concept is crucial, as it represents the primary cost of obtaining health insurance, distinct from other financial responsibilities that come into play, like deductibles, co-payments, and out-of-pocket maximums. Other options in the question relate to different aspects of health insurance, such as out-of-pocket expenses or specific costs associated with medical visits, but they do not define what a premium is. The premium itself is essentially the cost of the insurance policy, making option A the correct choice.