The cost of medical coverage in the United States is very different. The Affordable Care Act does not allow for pre-existing or gender-based premiums. However, many other factors can affect the amount you pay. These factors are discussed below to help you understand what you might be paying for your health insurance.
The best way to choose the right health insurance plan is to evaluate your financial situation, health, and future expectations. Especially if you have firms knowing the health insurance cost for employees is essential.
Nine Factors that Affect Premiums
Many factors can affect the cost of your health insurance. It’s helpful to be aware of these factors.
These are the 9 main factors that influence how much your premiums for health insurance:
Federal And State Laws
Legislation determines the coverage and charges that health insurance can cover.
Type Of Insurance
How much you pay will depend on whether an employer’s group policy covers you or if you purchase it yourself.
Income Level
Employers tend to pay lower wages, but low-wage workers may be paid more through their employers. Subsidies can make working through the federal or state exchange less expensive.
Size of the employer Larger companies are likelier to have lower insurance costs.
The State Of Residence
Premium prices vary depending on where you live and your county.
Type Of Community
Urban areas tend to have lower premiums than those rural areas.
Country of Residence
Some counties only have one plan, while others have more competition which can lower prices.
Plan Type
The most expensive plans are those offered by preferred provider organizations (PPOs) and platinum plans through the federal government.
Age
As a policyholder ages, health insurance rates increase. The most significant increases occur after 55.
Tobacco Use
Tobacco users pay up to 50% higher premiums.
Comparison Of Deductibles And Premiums
Higher premiums/lower coverage deductibles are more common in health insurance plans than lower premiums/higher coverage deductibles. The type of insurance you choose will affect how much you pay each month in premiums and how much out-of-pocket you pay when you need health care.
If you anticipate needing less healthcare in the next year, a health plan with a high deductible may be a good option. After you have reached your deductible, health insurance companies won’t begin contributing to the cost of medical services. After you reach your deductible, coinsurance is required. This means that you and your health insurance company share the cost of healthcare services.
This could be a 20% increase in your out-of-pocket cost and 80% for the health plan.
Calculate how much you would have to pay in health insurance premiums over a year, and then consider the deductible. Are lower premiums worth the extra cost? Or is it worthwhile to pay a higher deductible? Can you afford higher premiums while knowing you will save money if your needs arise during the year?
A higher premium and lower-deductible health plan might be a good choice if you anticipate needing health care services, mainly if you are pregnant or planning surgery. A high-deductible plan might be the best choice if you don’t anticipate needing many health services.
You can choose a Bronze or Silver plan if you want an ACA policy. However, they have higher deductibles, and you pay fewer premiums than a Gold plan. While Platinum and Gold plans have higher premiums, you will pay less out of pocket when you require care. Connect with Health Compass to have more information about Health insurance or employee benefit broker.
