What Affects Health Insurance Premiums?

Each year, many U.S. citizens do not receive the medical care they need because of the high costs associated with hospitals and doctors' offices. Health insurance coverage can alleviate the cost burden but only for those who can afford health insurance premiums. If you are shopping for health insurance, it may help you to know what factors affect the cost of your health insurance premiums. With some planning, you may be able to help control insurance costs for yourself and your family.

Health and Wellness

• According to Compuquotes.com, personal and family health can be one of the main contributing factors when it comes to the cost of your health insurance premiums. An individual who has any condition that requires prescription medicine or medical treatment typically has higher medical expenses. If you already have, or if you develop, a medical condition that requires frequent medical care, you can expect to pay higher health insurance premiums to offset your insurance company's expenses.

Level of Coverage

• Most health insurance companies offer a variety of different health insurance plans. You can choose a plan that best meets your needs, whether you are an individual with only basic coverage needs or have a large family with more needs. If you choose basic health care coverage for a handful of doctors' visits per year, your premium costs will be lower than if you require more extensive care and select more comprehensive coverage.

Deductibles

• Most health insurance plans are structured with a deductible limit. Within the course of a given year, you will be required to pay the cost of health care up to your deductible limit. Once you have met the deductible, your health insurance provider then covers the remaining health care costs. The deductible you choose can noticeably impact your premium costs. A low deductible of $500 or less would result in a higher monthly premium while a higher deductible of $2,000 and up would translate to a lower monthly premium.

Legislation

• The Congressional Budget Office notes that current and proposed legislation can also be a contributing factor when it comes to determining health insurance premiums. Health insurance laws that affect the manner in which an insurance company manages expenses, chooses health care providers or distributes benefits can affect the company's bottom line. As a health insurance provider's costs increase, you may see an increase in your health insurance premiums.