Medical and Health Insurance Rates

Medical and health insurance rates refer to the cost of insurance to a person. This cost is dependent on various factors. An alteration in these factors can lead to a variation of as much as 50% in the health insurance rate. As a serious attempt to understand this concept requires knowledge of actuarial science; we’ll simply make an effort to understand the basics.

Medical and health insurance rates refer to the cost of insurance to a person. This cost is dependent on various factors. An alteration in these factors can lead to a variation of as much as 50% in the health insurance rate. As a serious attempt to understand this concept requires knowledge of actuarial science; we’ll simply make an effort to understand the basics.

Medical and Health Insurance Rates: Determinants

The factors affecting medical and health insurance rates are dependent on the type of insurance plan selected, gender and the age and health condition of the insurance seeker. Other endogenous factors affecting the rates are the insurer’s present insurance plan, the amount of deductible s/he would like, the credit rating of the insurer etc. Insurance companies tend to attach great importance to smoking habits (both active and passive), present medications and dosages that the to-be-insured is following, whether he drives a car or not and other such information./p>

Medical and Health Insurance Rates: Is it possible to lower them?

There are certain precautions one can take to lower the medical insurance rate:

• One must go through the plan document carefully before taking insurance cover.
• If the agent offering insurance has given the insurer a brief introduction of the plan, then s/he must also inquire about the vagaries and the conditions under which cover will not be provided.
• An improper knowledge about one’s own health may result in paying unfair medical and health insurance rates. One must know his/her exact needs before filling the form as the fees once paid are normally non- refundable.
• One should avoid cheap insurance covers because these may come with too many conditions under which the claims will not be fulfilled.
• One should have a look at the credit rating and previous track record of different insurance companies.
• Individual plans are not the last option. At times, group plans and plans from employers come at lower medical and health insurance rates.
• Last but not the least; the insurer should have an idea of what is affordable to him/her.

So, knowledge of the factors influencing medical and health insurance rates can help one to acquire cover at a lower cost and avoid fictitious insurance providers.