Your health insurance quote is based on several factors. What people usually look at first is what their premium will be. Now your premium can be less or more depending on what you choose to go with in deductible rates and co-payments. Your overall health insurance quote considers those when asking you for a certain amount of money for coverage.
To find different health insurance quotes you can use this website. Just provide your zip code and start searching for your best health insurance deal!
According to ABC News, the government is helping those struggling to pay health insurance premiums. In some states, the premiums are being cut up to 40% because the government is offering incentives and new rules. This was passed with the new health bill to act as a bridge until 2014 where no one will be denied insurance based on any pre-existing health conditions.
How is my insurance premium calculated?
The amount charged to a person is based on statistical data that is calculated by an underwriting department of the insurance company in which you’re receiving a quote. They use information from your health history, your age, and even your gender.
The process also looks into family medical and health histories. They do this by finding and analyzing reports from motor vehicle reports and the medical information bureau. Once this information is looked over a statistician, they will take into consideration the likelihood of you, the applicant’s chance of taking a claim out on their policy. The statistician will incorporate charts and tables, such as mortality and sickness ones, to help determine prospective losses to the insurance company.
What are mortality and sickness tables?
These are tables that calculate the likelihood of a person getting sick or dying based on their age and gender. Based on data gathered by an application, statisticians will use these tables alongside the information to come up with results. The results will determine the premium that is assigned to an applicant.
What are some out-of-pocket expenses that I may have?
What you pay for health related service beyond your monthly premium are out of pocket expenses. These can include copayments, coinsurance, and yearly deductibles for things like prescription drugs and doctor visits.
Copayments are exactly how they sound, a payment that goes with the total cost of a service. These are set amounts that are included in your plan that you pay for any health service.
Coinsurance is different from copayments. Coinsurance is a percentage of the cost of coverage you pay out-of-pocket even after you’ve met your yearly deductible. This is usually about 20% of whatever amount your health plan covers for deductible.
A deductible is what you pay every year for health expenses before the insurance company takes over payments. These are common in most policies, but with some government-sponsored health care, such as Medicare, you end up paying two separate deductibles. These two deductibles are usually one for health services and the other for prescriptions.
What are most people paying for health insurance?
Not everyone has health insurance. Almost 45 million U.S. citizens do not have coverage. Those who do are covered by private insurance and some are covered by low costing government sponsored insurance, such as Medicare and Medicaid.
Many Americans, who do have coverage, get it through their employers. The rest either are covered by individual plans or by the government sponsored health insurance.
The averages for premiums can vary. Some people pay anywhere between $2,000 a year for premiums, while others can pay upwards of $6,500.
Premiums are different from state to state. Those states that are more populated pay more in premiums than those that are less populated.
Another factor in premiums paid by Americans is whether the deductibles are low or high. Those who have deductibles pay less and on average between $5,000 and $6,000 in yearly premiums. Those that have no deductibles pay much more in premiums, on average between $12,000 and $13,000.
Your insurance quote ends up being a reflection of how risky you are to insure. While much of it depends on age, gender, and health history, it can also depend on what area of the country you are living in. In addition, if you have any pre-existing health conditions your health insurance quote can end up being extremely high or you could be denied all together.
To compare different health insurance rates, enter your zip code in the box provided.