How Are Health Insurance Rates Determined?

Very few people understand what factors come into play when health insurance companies give you a health insurance quote. While each insurance company takes into account different factors and uses a different formula, here are some of the main things that almost every health insurance company considers…


Many people aren’t aware of this, but the prices for standard medical procedures can vary greatly depending on where you live. A checkup in Miami is going to cost a lot more than it will in Arkansas, so obviously health insurance companies have to take that factor into account. This is not really something that you should worry that much about because it’s not like you can do anything about it.

Lifestyle Choices

Specific lifestyle choices also play a role in determining your health insurance rate. Some people just like to live a more risky life. Some people like to smoke, ride motorcycles, go skydiving, and live on the edge. There is nothing wrong with this, but if you live this way, expect your health insurance premiums to be a little higher. You shouldn’t change the way you live just to get low health insurance premiums, but don’t be surprised if you pay more in the long run.

Medical History

Your medical history plays a large part in determining what your health insurance premiums will be. It makes perfect sense that someone with a pre-existing medical condition will need more frequent medical care than someone who does not, so their premiums will be higher. If you have never had a medical problem and are pretty much healthy, you are seen as less of a risk and there is a smaller chance that you will need frequent care. Your rates will be lower.

Desired Level of Coverage

Finally, the level of coverage you desire will play a very large role in determining how much you will pay for your health insurance policy. If you want minimal coverage, you will not have to pay very much. But, if you want total coverage and lots of special features added on, you will need to pay more. Before you go looking for health insurance quotes, it is a good idea to write down the specific level of coverage you need and go from there. If you don’t know what you are looking for, it will be hard for you to get accurate quotes and make comparisons.

There are many different factors that come into play when health insurance companies determine your health insurance quote. Most of these factors are put into a formula and when the calculations are done, your quote pops out. It is quite complicated, but it is also simple (if that makes any sense). The best thing you can do right now is input your zip code into the form above, click submit and start comparing health insurance quotes. In no time, you will have a better understanding of how quotes are determined and what you should be paying for coverage.

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