When most people think about their health insurance premiums, they think about the monthly cost. However, there are other costs associated with your health insurance that you may not be aware of. In this blog post, we’ll discuss how much your health insurance premium is and what other costs you may need to consider when budgeting for your health care.
What is a health insurance premium?
A health insurance premium is the amount you pay for your health insurance coverage. premiums are paid to either an insurance company or to a health care provider that offers a self-insured plan. The premium is usually paid monthly, although some insurers offer discounts for paying annually.
Your premium is based on several factors, including:
The type of plan you choose
Your age
Your tobacco use
Where you live
Your family’s health history
Whether you use in-network or out-of-network providers
Most people get their health insurance through their employers, although it is also possible to purchase individual plans. If you have an employer-sponsored plan, your employer may cover some or all of your premium costs.
It’s important to note that your premium is not the same as your deductible or copayment. Your deductible is the amount you must pay out of pocket before your insurance company starts to pay for covered services, and your copayment is the amount you must pay for each covered service after meeting your deductible.
How is my health insurance premium calculated?
There are many factors that play into how your health insurance premium is calculated. Some of the most common include your age, whether you smoke, your zip code, and the type of plan you select. However, even these basic factors can have a wide range of prices depending on the insurer.
For example, a 40-year-old nonsmoker in Atlanta would pay an average of $321 per month for a silver plan in 2020, while that same person in Houston would pay $408 per month – nearly 30% more.
Of course, these are just averages. The only way to know how much your premium will be is to get quotes from different insurers. And even then, premiums can change year to year as insurers update their rates.
How can I lower my health insurance premium?
There are a few things you can do to lower your health insurance premium. First, shop around and compare rates from different insurers. Next, see if you qualify for any discounts. Some insurers offer discounts for things like being nonsmokers or having certain health conditions. Finally, consider opting for a higher deductible plan. This type of plan has a lower premium but requires you to pay more out-of-pocket costs when you need to use your insurance.
Conclusion
There you have it! Those are the basics of how health insurance premiums are calculated. Keep in mind that there are many different factors that can affect your premium, so it’s important to work with an experienced agent to get the best rate possible. If you’re looking for health insurance, we can help. Get a free quote today and see how much we can save you.