What is the basic annual cost of healthcare insurance called?

What is the basic annual cost of healthcare insurance called?

• A. One-time enrollment fee
• B. Amount paid per visit
• C. Maximum out-of-pocket cost
• D. Basic annual cost of healthcare insurance

Answer: (D)

The basic annual cost to maintain health insurance coverage is the premium. This is the amount you pay to keep the policy active, usually on a monthly schedule, and when you add those payments for a year, you get the annual cost of the plan. Other terms describe different costs: a one-time enrollment fee is just a setup charge, the amount paid per visit is a copay, and the maximum out-of-pocket cost is the cap on what you pay in a year after which insurance covers 100%. The option phrased as the basic annual cost aligns with the concept of the premium, making it the best fit.

The basic annual cost to maintain health insurance coverage is the premium. This is the amount you pay to keep the policy active, usually on a monthly schedule, and when you add those payments for a year, you get the annual cost of the plan. Other terms describe different costs: a one-time enrollment fee is just a setup charge, the amount paid per visit is a copay, and the maximum out-of-pocket cost is the cap on what you pay in a year after which insurance covers 100%. The option phrased as the basic annual cost aligns with the concept of the premium, making it the best fit.