Thursday, June 4, 2015

6 Factors That Affect Your Health Insurance Coverage

Health insurance coverage has been a big topic over the past year. With the introduction of the Affordable Care Act, the way health insurance at the Lake of the Ozarks works has changed. To better understand the Affordable Care Act, check out our blog Health Insurance Enrollment FAQs. Health insurance, just like any other type of insurance has a premium that you pay. Due to the Affordable Care Act, Lake of the Ozarks insurance companies have changed the way they determine these premiums. Here are the 6 factors that they will look at:

1. Age 

According the, older people can be charged up to 3 times more for premiums than younger people. Before the Affordable Care Act was instated, older Americans could expect to pay up to 5 times more for their insurance premiums. While this change is great for the older population, the younger generation can expect to pay more for their insurance now.

2. Location

Where you live can have a big impact on what your insurance premiums will be. Factors include competition, local regulation, and cost of living in your area. Health insurance premiums remain high for those living in rural areas. In many cases, this is due to the lack of competition between insurance companies.

3. Family Size 

Insurers can charge more for a plan that also covers a spouse and/or dependents. The more people that a plan covers, the higher the cost of the premium. You want to make sure that everyone in your family is properly covered if something were to happen.

4. Tobacco Use states that those who use tobacco products could be charged up to 50% more for their insurance premiums. The Centers for Disease Control estimate that this could affect up to 19% of the population. While some states have banned the increased costs for smokers, others are charging the maximum fee. Experts predict that most states however, will charge somewhere in the middle to mitigate costs without alienating potential clients.

5. Plan Type

When shopping the Marketplace, you have 5 different categories to choose from: Bronze, Silver, Gold, Platinum, and Catastrophic. Each category reflects how you and the plan share costs. Bronze plans will likely have lower premiums and higher out-of-pocket costs, while platinum plans are likely to have the highest premiums with lower out-of-pocket costs.

6. Cost Assistance

Premium tax credits can lower what you actually pay for your premium. These tax credits are only offered through the Marketplace to those with household incomes between 100% - 400% of the federal poverty level. Those with household incomes of 100% - 250% may qualify for lower out-of-pocket costs. These Cost-Share Reductions apply only on Silver Plans.

Under the Affordable Care Act, insurance providers can no longer charge women more than men for the same policy. They also cannot take health status into account. All Marketplace policies must cover all pre-existing conditions from the first day coverage begins. As your Lake of the Ozarks insurance agent, I'm here to answer all your health insurance questions. Give Insure the Lake a call at 573-348-2794 today!

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral

T: 573-348-2794
F: 573-348-0191