There is no one-size-fits-all approach to when receiving a health plan quote. A healthy, 20-year-old man in New York City isn’t going to pay the same premiums as a 55-year-old man who smokes and lives on a farm in small-town America. A variety of factors come into play in the price of your healthcare. Continue reading to learn the five main factors.
1. Age
Age is going to be one of the most significant factors that will affect your health plan quote. The older you are, the higher your premium tends to be. That is because older individuals are more likely to have health issues and are more likely to use medical services. The use of these medical services is something that the insurance companies will have to pay for. So, for the company to get a return on their investment, they must charge more on the premiums.
This scenario is why it is imperative that, if possible, you get health insurance coverage as young as possible so you can lock in those lower rates.
2. Location
Where you live can also have a great impact on the price of your healthcare plan. Just like with other goods and services, healthcare costs vary by region. The closer to rural areas, the higher premiums, and vice versa.
It’s also important to consider state and local regulations regarding healthcare costs in your area.
3. Smoking Status
If you enjoy smoking cigarettes, your wallet may take a hit when it comes to your healthcare premium. Smokers typically receive higher health plan quotes than non-smokers. And that’s because, similar to those with old age, smokers have an increase in various health issues, like lung cancer, which will lead to higher costs for the insurance company.
So, it’s critical that if you are a smoker, you understand the rates you get will differ from those that don’t. However, if you’re ready to give up the habit, the Affordable Care Act and other federal laws require most health insurance plans in the states to cover some level of tobacco cessation treatments.
4. Coverage Level
We all know the saying, “You get what you pay for.” Well, that rings especially true with healthcare plans. Your health plan quote may be higher or lower depending on the type of coverage you select (e.g., Bronze, Silver, Gold plans). And that’s simply because the higher-tier plans are going to offer better benefits and lower out-of-pocket costs, but with higher premiums, lower-tier plans will cost less but come with some not-so-great benefits.
If you are looking for health plans, you should take the time to evaluate your medical needs to choose the correct level for your circumstances.
5. Pre-Existing Conditions
Now, you might be thinking, isn’t this illegal? While the Affordable Care Act does prevent insurance companies from denying you coverage based on pre-existing conditions, that doesn’t stop them from limiting the types of plans available and the costs attached.
So, if you have a pre-existing condition, it is recommended that you look for plans that cater to those specific medical needs while you are comparing quotes.
Have Health Insurance Questions?
We hope that this information on factors that influence health plan quotes is helpful for you.
Insurance is oftentimes overwhelming and we want to shed light on the industry by answering your questions. Comment below and your question may be the topic of our next post!
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Great article! I found the insights on how different factors impact health insurance quotes really helpful. It’s interesting to see how age and health status play such a significant role. Thanks for sharing!
Hi Elijah. We are glad you enjoyed the article. If you want to see if you are eligible for insurance coverage changes, please call us at 888-446-9157.