With the Government’s requirement of everyone in the United States having health insurance, the rates have gone up. As you check in with more and more friends about the rates they are paying, it’s likely you are getting fluctuating numbers. This can make you wonder what the difference is between what you will pay and what your friends are paying.
All insurance companies will take many factors into account when considering your health insurance rates. People don’t just fall into an age group or gender category that decides on their rate. The rate process is more complex than these basics. Let’s take a look at what some of these other factors are below so you can see what is affecting your insurance rate.
Your Zip Code
This factor comes as a shock to many. The zip code in which you reside can drastically affect your insurance premium. Those who have less access to healthy food stores pay a higher premium. If you live in an area where the statistics show a large portion of unhealthy individuals, your rate will increase even though your health is impeccable.
Insurance companies are realizing that the environment of their customers plays a big role in the lifestyle activities of their customers. While this factor is currently being combated by practice regulators, realize it still does play a role in the rate you receive.
Insurance companies base their rates off of statistical trends that they identify with customers of similar aspects. Those who are married tend to get a better rate than those who are single. This is attributed to the facts that married individuals tend to take less risk, care more about their health, and live longer as compared to those who are single.
This one shouldn’t really come as a shock to many. If you use to chew tobacco, smoke cigarettes, or cigars, expect to pay a much higher premium on your health insurance. Tobacco has been clearly proven to increase a person’s risk of a plethora of health diseases, which means the insurance company is much more likely to pay out in claims of individuals who use tobacco regularly.
Your job is a big factor in your insurance rate. If you work in a dangerous environment where hazardous chemicals or high injury rates are present, expect to pay more money. Those who have sedentary jobs will pay more due to increased risk of cardiovascular disease and repetitive motion injuries.
If you have been previously uninsured for any notable amount of time, it’s likely you will be charged a higher rate. It’s common for individuals to not partake in health insurance until they have ailments which need to be treated. This is why insurance companies will charge individuals who are looking for health insurance after a large non-coverage time more money than those just switching insurance companies.