October 23, 2020

Factors that Affect Your Health Insurance Premium

The cost of health insurance is of concern to all of us. What we pay for it can differ dramatically from one person to the next. So, what factors affect health insurance? Across the board, some of the factors affecting your health insurance premium include the location of your residence, your age, income, whether your employer has coverage available for you, how broad that coverage is and its quality. Fortunately, the general rule is that your past medical history and any per-existing conditions aren't taken into consideration any more. Here is a review of some of the factors affecting insurance premiums that you pay for your health insurance.

  • Your Age: It's likely that you're far less of a risk to your health insurance company if you're 32 years of age as opposed to 62. Issues of increased significance can arise as we get older, and they'll get to be more frequent too. It's also likely that those issues will be more costly for hospitals and health care professionals to deal with. Although premiums might triple once you''re over 60, state and federal laws place limits on how much your premiums can creep up to.
  • Tobacco Use: One of the pivotal factors affecting your health insurance premium is any tobacco use by you. Whether you smoke or chew, you place yourself at a much higher risk of major health disorders. If you use tobacco products, you can expect to pay at least twice as much for your health insurance coverage. If you do smoke, it's a drug addiction, and it's time to quit.
  • Your Driving Record: Yes, we're talking about health insurance and not car insurance, but your driving record can affect a determination of whether you are higher risk of being in an accident. If you are, your health insurance premiums could be affected. A simple check with your state's DMV can help a health insurer determine whether you're a risk taker and more likely to be injured in a motor vehicle accident. Speeding and drunk driving convictions aren't going to help you.
  • Where You Live: Do you live in Southern California or Southern Illinois? The cost of living in one place is far less expensive than in the other. That has a direct effect on the cost of health insurance. Your state's insurance laws might also be factors affecting insurance premiums there. Even the county that you live in can be a factor in how much you pay. 
  • Your Lifestyle: Do you race cars, motorcycles or bicycles, or would you rather sit at home and get your thrills watching a movie? The riskier that your hobbies might be, the higher your health insurance premiums are going to be.The reasoning for this is simple. There's an increased risk that you'll get seriously injured if you participate in high-risk activities. You might even be charged a higher premium if you're in a high-risk job like cellular tower construction.
  • Your Income: Like anything else, the type of product that you purchase depends on your income. There are four types of health insurance products that are     available under the Affordable Care Act. Those are color coded as bronze, silver, gold and platinum. Their benefits vary in the amount of coverage that an insured person gets and his or her total amount of out-of-pocket expenses. They operate on a sliding scale. The less that you pay in out-of-pocket, the higher that your premium is going to be. Gold and platinum plans are more affordable for people who are in higher income brackets, while even bronze plans might not be affordable for those at or poverty level.

What Factors Affect Health Insurance?

Aside from the factors listed above, there are other hidden factors that affect health insurance, like the type of insurance that a person might have and the benefits that it provides. The types of insurance companies can range from conventional like Blue Cross Blue Shield or John Hancock to an HMO, PPO or an EPO. So long as you obtain services from an approved network provider, an HMO or EPO might provide for 100% of your medical care and treatment for most services. Keep the fact in mind that if your employer doesn't have health care benefits, and you're unable to even afford a bronze plan, you're likely eligible for coverage through your state pool or Medicaid. One way or another, there's health care coverage out there for every American.