How Do Insurance Companies Calculate Health Insurance Premiums

June 28 2008 by visitor in Health insurance leads |Comments Off

Reader’s Question:

How will my health insurance premium rate be calculated in Seattle?

Elizabeth

Seattle, WA

Thanks for asking, Elizabeth!

For most insurance companies I know in Seattle, the cost of you health insurance policy is determined by your health status and your age. Normally, the younger and healthier you and your family are, the lower your rate will be. In most cases, your health insurance company will use all the information they gather about you to determine whether they need to charge you their base rate as approved by your state’s insurance regulator for people within your age bracket.

The base rates of health insurance companies are usually available in a chart on their websites. You can also request these charts by calling health insurance companies. Health insurance companies assess their risk rate based on your health status and age. So if they find that you will most likely cost them more than the average person within your age group because of your existing health status, then you are most likely to be charged with higher health insurance premium.

Will the state laws affect your rate? Yes, rates may also vary depending on what the state law requires health insurance companies to offer as benefits to their policyholders. You can always check from the health insurance department on rules limiting premiums. For detailed information though, you can always call a local health insurance agent or start shopping around online by entering your zip code on the space located in this page.

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