Factors That Affect The Average Health Insurance Cost

Thursday, June 11, 2009

FACTORS THAT AFFECT THE AVERAGE HEALTH INSURANCE COST

It is not easy to breakdown the average health insurance cost into a simple, single figure. This is due to the fact that the costs are dependent on many different factors and therefore, vary quite largely. Some of these factors have been discussed below briefly to help guide your search for the best insurance cost.


Locality

Every state has its own rules and regulations pertaining to health policies. Hence, the premiums on these policies differ significantly from state to state.


Type of Health Insurance

There are so many types of policies available in the market. You may choose from the available private health insurance policies, group health insurance policies (based on your job or an association that you belong to) or even from government-funded policies such as Medicare or Medicaid. The premiums on these policies differ greatly.


Age

Common sense tells us that there are certain health risks associated with certain age groups. Consequently, the premiums on the policies usually vary depending on the age of the insured.


Health Status

Most private health insurance policies require you to declare pre–existing medical conditions. If you do have any such conditions, premiums on your health insurance are often charged significantly higher.


Lifestyle

If you consume alcohol, smoke and are overweight, you are considered to be more liable to suffer from certain health problems. Hence, it is likely to cost more.


Coverage

The cost naturally depends on the coverage provided as well. For example, coverage for maternity, office visits and brand prescription drugs tend to increase the cost of the health insurance. Dropping such covers that you do not need will bring down its cost.


Preventive Care and Well-Being Services

Some of it comes with additional benefits such as preventive care and well-being services. You may get to attend workshops on healthy eating or get a health club membership at a discount by getting these health insurance policies. But, usually, with these additional benefits come additional costs. For further information on average costs, you may want to refer to reports generated by The Association of Health Insurance Plans. These reports are often prepared based on the different factors that affect its costs.