How Much is Health Insurance – That is the Question
Health insurance is one of the most important things that must be secured the moment you land a job. This will give protection to you and your family’s health and will help you save a high amount of money in case you get hospitalized. But wait. Have you ever asked yourself, how much is health insurance? You will discover the answer in the succeeding paragraphs. You also can read our health insurance comparison.
Factors Determining Monthly Health Insurance Payment
The monthly payment for health insurance depends on the medical services covered and the type of health insurance you are searching for. If you opt to apply for an individual policy, the coverage obtained through the group plans of your employer is going to vary. But how much is health insurance? Before you know the answer to this question, it is first important for you to know the factors that determine the payment for it.
When you consider getting an individual health plan for yourself, some of the factors that will determine the amount you will pay monthly are the kind of health plan you obtain and its coverage, your medical history, your sponsorship as an employee, your job position, your age and your location.
When it comes to location, the average monthly insurance cost of a family living in an urban area varied from that of the family living in the rural area. The very same thing goes to those families living in suburban areas.
The answer to the question “how much is health insurance” also depends on the kind of job the head of a certain family is employed to. Executive professionals have higher premium cost while those people working in factories have lower cost. This implies that the rates of the insurance depend largely on the salary of the individual who will be paying the health insurance coverage.
The employee’s sponsorship is another factor that determines the rates of the health insurance. This implies that there are companies automatically insuring their workers and pay ½ the cost for the insurance plan of their families.
The rate of the health insurance is also determined by your age. If you belong to the middle-age group who would like to be insured, the insurer will be considerate of your age and the age of your insured family members. There is also a chance for you to be given a different health insurance coverage plan cost.
Also, the employment and location based on the insurance holder’s standard of living also has a significant role in influencing the cost of the insurance.
For instance, in New Jersey or New York, a certain family may pay $1,200 monthly premium if the family’s head took an insurance plan in New York through his company while a Maryland-based family only pay around $540 per month if the health insurance is taken for the private protection of the family. You might be wondering why the rate in New York is very high. Well, when you decide to work and live in this US city, you are obliged to have this insurance and to include the members of your family to it as well. On the other hand, in Maryland, families must be medically eligible to obtain their insurance coverage. If in case a certain family does not meet the criteria set by the insurance company, they can depend on the coverage insurance plans of the state. However, they should pay higher premium rates.
The Role of the Employer in the Health Insurance Payment
When you are obtaining health insurance through the group plan of your employer, he or she is required to pay a certain portion of the health insurance. Most states require the employer to pay at least 50 percent of the monthly premium of the employer and are not compulsory in paying any amount for dependents.
Average Monthly Cost of Health Insurance
The recent survey conducted by eHealthInsurance on the average monthly rate of a medical plan that is individually purchased shows that the average payment in 2010 was $392 for families and $161 for individuals. Now, you already know the answer to the question, of how much is health insurance a month. However, there are still some things you need to know.
Individual health plans cost less although it is counter intuitive. It would really make sense if the rate of individual coverage in a group plan would be less. The main reason for this is that you need to be medically qualified for group plans and individual plans. That implies that you will have lower risk once you successfully meet the criteria for individual health care. Thus, you obtain a lower health insurance monthly premium. Like a group plan, the monthly health average would change depending on the applicant’s age. Bear in mind that the actual health plan’s cost differs based on the coverage of the health plan. Things such as vision, dental, prescription coverage, out of pocket maximum, co-insurance, co-pays, deductibles and others, either decrease or increase monthly cost.
To estimate the amount you need to pay based on the aforementioned factors, getting a health care quote is a good idea. This will also help you know the answer to the question of how much is health insurance for a family of 3.
Health Insurance Coverage Options
There are also health insurance coverage options given to both individuals and families. For instance, some people just consider the coverage for accidents, which they can certainly rely on if ever untoward events happen. On the other hand, others want to be insured under the grave illness plans, most especially if a certain illness history runs in their family.
In accordance with the latest economic updates, in the next coming years, the average private health care insurance rate can range from $15,000 to $20,000 per annum. That means an average size family has to pay $1,250-$1,666 per month. This includes things such as Medicaid and Medicare taxes, insurance premiums and contributions of employees. It is also expected that politics will continuously play a role in the rate increase of families’ health insurance.
Now, you already know the answer to the question of how much is health insurance in America. This will surely help you to budget your money in a very effective manner.