Which term represents the cost of health insurance covered by an employer, shared with the employee or purchased through a Health Exchange?

Which term represents the cost of health insurance covered by an employer, shared with the employee or purchased through a Health Exchange?

• A. Government Healthcare Financing
• B. Premium
• C. Blue Cross and Blue Shield
• D. Fringe Benefit

Answer: (B)

The main idea here is the price you pay to keep health insurance active. That ongoing amount is called the premium. It’s the monthly or periodic cost of the policy itself, whether the employer covers part of it or you share the cost through payroll deductions, or you’re paying for a plan bought on a Health Exchange. The premium reflects the value of the coverage, separate from what you pay when you actually use services, such as deductibles, copayments, or coinsurance. Why this fits best: the other terms describe different things. Government Healthcare Financing refers to government programs that pay for care, not the price of a private insurance policy. Blue Cross and Blue Shield is the insurer, not the cost. Fringe Benefit is a broad category of extra compensation, which can include health insurance, but it’s not the term for the cost of the insurance itself.

The main idea here is the price you pay to keep health insurance active. That ongoing amount is called the premium. It’s the monthly or periodic cost of the policy itself, whether the employer covers part of it or you share the cost through payroll deductions, or you’re paying for a plan bought on a Health Exchange. The premium reflects the value of the coverage, separate from what you pay when you actually use services, such as deductibles, copayments, or coinsurance.

Why this fits best: the other terms describe different things. Government Healthcare Financing refers to government programs that pay for care, not the price of a private insurance policy. Blue Cross and Blue Shield is the insurer, not the cost. Fringe Benefit is a broad category of extra compensation, which can include health insurance, but it’s not the term for the cost of the insurance itself.