What are the Main Factors That Can Affect Your Health Insurance Plan?

Health insurance is like a lot of other products – there are many variables that go into pricing. One person’s policy can be quite similar to yours, yet they pay a significant amount less. It can be frustrating to pay more than someone else for similar coverage.

 

The Factors

While the coverage can be similar, there are a plethora of reasons an individual may pay more for the policy. So here are a few of the main factors that can affect your health insurance plan:

• Location: Where you reside plays a significant role in how much you pay for your health insurance. Regulations, competition, and cost of living in your area all are taken into account when pricing health insurance plans.

• Tobacco: If you use tobacco, insurers can charge you up to 50% more than a similar individual who doesn’t. Due to the health risks associated with tobacco, this is perfectly legal.

• Age: Older people typically require more medical services than younger people. As such, insurance companies charge them more. Legally, companies can charge older people up to three times more than a younger individual.

• Plan Style: Individual plans and policies will always be cheaper than family plans. This makes sense as more medical services will be required to keep a family healthy.

• Plan Category: The type of health insurance plan from the marketplace plays a significant role in costs. Bronze plans often require individuals to pay more overall than a Platinum plan.

• Body Mass Index: People with high body mass indexes usually have higher premiums than those with a regular BMI. This is due to the numerous diseases associated with being overweight.

• Gender: Women typically pay more for medical insurance than men. This is for a variety of reasons. Insurers believe that women use more pharmaceuticals, go to the doctor more, and are more prone to chronic conditions. Pregnancy can also play a factor in the premiums.

• Pre-Existing Conditions: If you have a pre-existing condition, you’re likely to pay more for insurance – even if the condition isn’t completely covered. Insurers know additional issues are liable to pop up related to the condition.

• History: Family history can be used to justify higher insurance premiums. If your family has a history of ailments or issues, then you may find high premiums in your future, too.

• Work: If you work in a dangerous field, then insurance companies may charge you more for premiums. Jobs that involve high injury rates, radiation, hazardous chemicals, international business travel, and more can all raise prices.

 

Too Many to List

 There are many factors that go into rating an insurance policy. Insurance companies can raise your premiums for reasons they deem necessary to run a business. These increases are usually due to statewide insurance claim losses. By understanding what they look for, you can be more aware of when an increase to your state, or, personal policy, could be affected.