These days, good health insurance coverage is practically a necessity of life. It can also be very expensive. The first step toward offsetting this expense is to understand what factors influence health insurance cost. Once these factors are reviewed you can then focus on changing the ones that you can change, and accepting and understanding the ones that you cannot. The following list of factors are several of the major determinants in health insurance cost.
Naturally, one of the most important elements in the health insurance cost algorithm is your health status. Health status will include such things as chronic diseases or other medical conditions. It is not uncommon for certain conditions to list as pre-existing conditions and not be covered under the policy. However, since these conditions will often predispose people to develop other health problems, they are then factored into the cost of insurance.
In many ways this influencing factor is similar to health status in that insurance companies use it to determine the likelihood of an individual becoming sick. Lifestyle will typically include such factors as whether or not you are a smoker, or whether or not you are overweight. Obviously these two factors alone don’t make someone sick, but they do increase the odds that they could develop an illness or medical condition and for this reason, the insurance company will often charge higher premiums based on these factors.
The insured party’s age is another contributing factor. Generally the older you are, the more likely you are to develop a chronic illness or major medical condition. Many conditions also tend to worsen with age and age can even affect things such as bone density and balance which could make accidents more serious. Therefore, the older you are, the more you’ll generally pay for health insurance.
The policy type itself will also have a huge impact on its cost. There are many different types of health insurance policies out there and some are more comprehensive, with more flexibility and freedom than others. You should fully research policy types and consider your own particular needs at the forefront of the decision.
The higher your deductible, the more out-of-pocket expenses you will experience and the less it will typically cost the insurance company. For this reason the lower the deductible on your policy, the more the insurance company will charge for it and visa versa. Coinsurance rates and policy maximum will also play a big role in determining the cost.
These five factors are not the only things that will influence the cost of health insurance, but they are five of the biggest. Remember that another determinant is also the particular health insurance company that you choose. It is always worth to do your homework and find the best health insurance to meet your needs. Please contact us here at Beaty Insurance so we may assist you in discovering the appropriate plan.