Looking for a Health Insurance Quote?

Get a free quote in under 5 minutes with our online form!

GET A QUOTE

Learn how your health insurance premium really works

Agnus Smith Published: June 14, 2018 Updated: January 26, 2018

Brain gears graphic

What are Health Insurance Premiums?

When being introduced to health insurance plans, most people can’t help but wonder what a health insurance premium is. Well, a health insurance premium is an amount you pay to the health insurance company every month to maintain your health plan coverage. The amount is determined by how much you are willing to pay for your health plans.

How do insurance premiums work?

For you to find the best health plans for your family, you must have a clear understanding of how each health insurance firm's premiums work with hospitals. Currently, America has affordable health insurance and the percentage of people who have coverage is increasing. The trend followed the realization that people who don’t have medical coverage often incur heavy medical bills. However, if you have a low premium, the percent of the medical bill you pay will be higher compared to that paid by an individual with a high premium.

Examples of Health Insurance Premiums

There is public health insurance and private health insurance. As the name suggests, the former is provided by the government. Some of its health plans include Medicare, which is coverage for people over 65 years or those living with disabilities and Medicaid. It is also available to those with low incomes and those who qualify.

On the other hand, private health insurance may cost a little more, and it’s offered through employers and other organizations. This type of insurance is usually divided into different types of covers, and you have to check your health insurance quotes to determine what you will receive coverage for. You must do this to ensure you settle for an affordable health insurance.

Where Can You Get Your Premiums?

You can search for health insurance quotes from First Quote Health, all you need to do is enter your zip code to begin comparing health insurance quotes. You will find many companies that offer affordable health insurance, and all you have to do is choose a health plan that suits you best. Insurance companies, however, have to conduct an assessment of your details to obtain risk factors. These factors will determine if the company will provide you with insurance or not.

If you are eligible for health insurance, the company will calculate your premiums and provide you with a health insurance quote. First Quote health will provide you with the resources you need to find an insurance company that has your preferred standards for calculating insurance premiums.

How insurance premiums are set

The premium amount is set after an insurance company has assessed various risk factors that may affect your health. Some of the risk factors assessed include:

Body Mass Index (BMI)

Your body mass index will affect your premium amount because unlike those with a normal BMI, individuals with a high BMI are prone to diseases such as diabetes and heart problems. Subsequently, if your BMI is high, the health insurance company may charge you premiums that are higher than the market average.

Tobacco Use

Individuals that use tobacco products are often required to pay higher health insurance premiums. Those that have quit may also be charged higher premiums because tobacco use is associated with numerous health problems. There are health plans that offer coverage for smoking cessation products and such plans may help to minimize a tobacco user's health risk.

Age

Young working adults often pay low premium amounts as compared to the older people in any society. This is because younger people have a lower probability of developing health problems, and they are also less likely to visit the doctor’s office. Older people, on the other hand, will most likely visit the doctor a couple of times per year.

Gender

In most states, women pay higher premium amounts than men. This is because they are more likely to visit the doctor on a regular basis, be prone to certain chronic diseases, and take prescriptions.

Family History

If your family has a history of a certain health problem, you will most likely pay higher premium rates.

Location

Where you live also determines the premium amounts you pay. Some of the factors looked at including the cost of living in a certain geographical area and the differences in state laws.

Your Profession

People work in different jobs, and there are those whose work environments are riskier than the job environments of others. For instance, those who work in areas with high radiations or in mines are more likely to pay high premiums as compared to an individual that has worked in a restaurant all his life.