Insurance Machine

It’s simple to reduce the cost of health insurance if you know how they are set. And this is how:

Your Zip Code. Where you live affects your premiums. Insurers look at the cost of medical services in your city, town, or rural area, and then set base rates accordingly.

Your Age. Many insurers group people by age, or by age group. For instance, the base rates for a 30-34 year old will be lower than those for a 50-54 yea old. In the US, middle aged people, between 50 and 64 can really struggle with health insurance premiums.

Your Health Habits. Overweight people generally have higher premiums than others, the same goes for smokers compared to non-smokers. These factors greatly increase the chances of an expensive doctor’s bill down the road and thus raise the insurance company’s risk of insuring you.

Health Conditions. Even controlled health problems, like high blood pressure, may cause insurers to increase health insurance rates over people who have never been diagnosed with those health conditions.

Type of health insurance plan. If you buy a PPO, where the insurer can encourage you to use their cost-saving network, your health insurance rates may be lower than if you buy a policy where you can get their best coverage with any medical provider.