Health insurance helps you get needed medical care by paying for a significant portion of your covered healthcare costs. In exchange for a regular premium, you can enjoy the peace of mind that comes with this essential type of protection. But it's important to understand that premium rates are not the same for everyone; below, learn about common factors that affect your rates.

What Considerations Determine Health Insurance Rates?

1. Location

Healthcare costs can vary substantially from one area of the country to the next. Premiums are often lower when risk is spread out over a large group of insured people, so it's not uncommon for someone in a more rural area to have to pay higher rates. 

The number of medical services offered in your general area also plays a role; when there is a lot of competition for patients, providers may be willing to accept lower insurance payouts—which can mean lower premiums for you.

2. Age

All insurance rates are based on a scale of risk. People with greater risk factors will, in general, pay more expensive health insurance premiums since the odds are higher that they will need to use their coverage more often or for more serious medical issues. 

Because older people tend to utilize medical services more frequently than younger ones, age is one of the biggest deciding factors when it comes to determining your rates.

3. Type of Plan

Different insurers offer different plans, each with their own tiers of service and coverage. The more wide-ranging and inclusive the plan, the higher the premium. For instance, the Affordable Care Act has bronze, silver, gold, and platinum plans, and each one comes with increasingly greater coverage, lower deductibles, and fewer out-of-pocket expenses.

4. Number of People Covered

The number of covered people under a policy will have an impact on the total premium price-tag. With more covered policy members, there will be a higher rate. 

However, this rate is still usually much less than it would be if you were to insure each of these people individually. So, while the total premium is higher, it remains a more affordable option than having everyone in your household insured under different plans or policies.

When you need health insurance in Centerville, OH, trust Harris Insurance Agency. They provide a wide range of insurance solutions, including private policies, Medicare coverage, and Medicare Advantage Plans. Let this independent, family-owned agency help you find the plan that best protects your family, health, and budget. Call (937) 387-6672 or visit them on Facebook to schedule a consultation or request a quote.