What is a Medical Insurance Premium?
A medical insurance premium is a payment made to medical care providers in return for medical care coverage. Your medical insurance premium payment is determined by advertising, services you received from health practitioners, administrative costs and the type of coverage you choose to have.
The National Coalition On Health Care states that “…the annual premium for single coverage averaged over $4,700” in 2008.
Benefits of Medical Insurance Premiums
Medical bills can add up to thousands of dollars without medical insurance. C.T Robertson in his book titled “Get Sick, Get Out: The Medical Causes of Home Mortgage Foreclosures,” states “1.5 million families lose their homes to foreclosure every year due to unaffordable medical costs.” Paying a monthly medical insurance premium protects you against unexpected medical expenses.
How to Get Medical Insurance
Health insurance can be provided by your employer or your can get plan options direct from an insurance company. If you accept employer provided coverage your monthly medical insurance premium can be directly taken from your paycheck. If you go directly through an insurance company you will be billed.
Cost vs. Flexibility
If you require more comprehensive medical coverage, expect to pay higher medical insurance premiums. You’ll choose between an indemnity plan, preferred provider organization, or health maintenance organization. Determine the plan that best fits your flexibility requirements.
The good news is your medical insurance premiums might qualify you for a tax deduction. This deduction takes place when your total medical expenses exceeds 7.5 percent of your total income.