A premium in health insurance is the amount of money that a policyholder pays every month to keep their health insurance policy active. In addition to the premium, policyholders usually have to pay other costs for their healthcare, including a deductible, copayments, and coinsurance. The premium is a fixed cost that policyholders must pay each month, regardless of whether they visit a doctor or use any other healthcare service. If a policyholder has a Marketplace health plan, they may be able to lower their costs with a premium tax credit. When shopping for a plan, its important to keep in mind that the plan with the lowest monthly premium may not be the best match for the policyholder. If they need much health care, a plan with a slightly higher premium but a lower deductible and copayment/coinsurance may save them a lot of money. After enrolling in a plan, policyholders must pay their first premium directly to the insurance company, not to the Health Insurance Marketplace.