Individual health insurance
Many factors affect the price of individual health insurance, including a profession, age, locality, general health history, and the benefits, exclusions, and deductibility associated with the individual health insurance plan. The factors that affect the price are similar to the factors that affect the cost of group health insurance. In addition, other external factors affect health insurance premiums, such as medical costs, the cost of compliance, and the company’s overall operating costs.
An insurance company can use its occupation as a factor in calculating the premium based on the risk factor of the occupation. For example, an applicant in a high-risk field may have to pay higher premiums than an applicant in a relatively low-risk area. Insurance companies hire risk analysts and use computer algorithms to determine prizes.
An applicant’s country standard or geography has a similar effect as a profession. For example, if residents of a particular area are more likely to develop diseases caused by environmental problems, such as air pollution, then everyone in the area may have to pay a higher premium. The general health of applicants also gives the insurers an idea of the long-term cost of providing healthcare.
A relatively healthy person can be expected to cost the company less money than an unhealthy person, which usually results in a premium difference. A person’s medical history is also recognized when determining the cost of individual health insurance. If an applicant has a history of illness, that premium may be slightly higher. Other factors, such as pre-existing conditions that require immediate treatment and coverage, are also considered within the health plan cost.
One of the key factors determining the price of an individual’s health insurance is the level of the health plan. A health plan that covers fewer items, or has relatively low caps, is likely to have a lower premium than a healthcare system that covers more and has higher limits. In addition, the plan’s deductible or co-pay costs also play a factor in the price of the individual’s health insurance.