Question

what is a premium?

multiple choice

the periodic payment the insured is required to make to keep a policy in effect

the amount that the insured pays on covered services before benefits begin

the percentage of each claim that the insured pays

a prepayment covering providers services for a plan member for a specified period

Explanation:

Define premium in health insurance

A premium is the periodic payment made to keep an insurance policy active.

Analyze the incorrect options

The second option describes a deductible. The third option describes coinsurance. The fourth option describes capitation.

Match with correct definition

The first option matches the definition of a premium.

Answer:

• (A) the periodic payment the insured is required to make to keep a policy in effect (Correct answer)
• (B) the amount that the insured pays on covered services before benefits begin
• (C) the percentage of each claim that the insured pays
• (D) a prepayment covering provider's services for a plan member for a specified period