Health Insurance Articles
Understanding Risk Factors For Your Healthcare Insurance Plan
2010-11-04
When applying for healthcare insurance it's important to understand what as constitute risk factors and how they are weighed by insurance companies.
Healthcare insurance is a way of playing the odds. Just as there are odds of getting a particular combination of cards in blackjack or poker, there are odds of different people developing particular illnesses or conditions, or suffering particular injuries. Some conditions are associated with particular work: cuts often happen to butchers, lung problems are associated with forms of construction and mining, repetitive motion injuries are associated with typing and working at cash registers. Other conditions are associated with particular existing physical traits: overweight, underweight, pre-existing conditions that feed into other injuries and diseases.
Insurance companies employ actuaries to determine the odds of a person with various risk factors needing medical treatment and the likely cost of the treatment over time. They then determine a price for insurance premiums that allow the company to make a profit on average, with different costs for people who have different risk factors. Between the average profit made from the folks who never need much medical care, and the extra cost of premiums, the insurance company covers expenses and makes a profit for stock holders.
This places many people in a difficult situation. Many risk factors indicate a person will need the benefits insurance offers. But the cost adjustments made to premiums for those with high risk factors can severely limit the ability of a client to pay for the insurance they need. Much of the ongoing debate regarding appropriate healthcare costs revolves around ways to ensure those who most need insurance receive it without forcing the companies that supply insurance to jettison their profit margins.
This all has a real and direct affect on those looking for healthcare insurance. Before applying take time to review with your doctor any known risk factors you carry. Overweight, underweight, cancer indicators, diabetes, and many other existing conditions can all play into an insurance company's decisions regarding what to charge for premiums. Similarly take the time to determine if you are in a profession with widely recognized risks.
Be aware that as soon as you apply for healthcare insurance, the company you apply to is legally allowed to research your personal records to determine if you are concealing any known risk factors. Attempts to avoid this problem are seldom successful before you obtain healthcare insurance, and often become matters of legal limitations should you ever need insurance to cover those conditions. Your best option is to accept a wide array of quotes, and determine what coverage plans offer you coverage for a cost you can afford
