health insurance

There are so many question people are asking about what is actually considered part of the cost of having health insurance. The reality is that health insurance and healthcare are related terms but cover very different concepts. The cost of health insurance must be able to justify its payouts and therefore understanding the high cost of healthcare can bring out the true cost of health insurance. The health insurance starts with premiums.

People are charged very different premiums based on their personal risk factors and health habits. When a person is a smoker or a drinker, they have a very different risk factor than non-smokers and non-drinkers. What the insurer sees is that they lead a different lifestyle by the fact that they smoke or drink thereby leading to more health risks. Insurance companies have to consider every area of a person’s life when deciding to cover them for insurance or else they find that they are quickly out of business themselves. Insurance is supposed to cover those emergency moments that may spring up and surprise a person at any given time.

If insurance considers the habits a person has as uninsurable it is usually because of all of the medical expenses that are connected to them maintaining that habit. Smokers and drinkers have more frequent doctor’s visits because of the connection between their habit and the side affects that result from them. Doctors must do more diagnostic work on people who have life threatening habits to ensure that these habits have not affected other areas of health concern which they usually do. The cost of more tests will be reflected in the cost which is set through the premium a person pays.

The more distant a person is from unhealthy habits, the more likely they are to have smaller insurance premiums than others. The high cost of health insurance is also spread over all of the insured. If one person has an unhealthy habit, it will not just affect them, it will affect the cost for everyone. It is true that healthy people carry a lower premium, but it was be even lower if there were fewer risky people increasing cost and more people sharing the cost. When a claim is paid out, it is taken from the pool and not just from a person’s monthly premium which would hardly cover the true healthcare cost.

A person’s treatments that are covered by insurance will carry a heavy cost over the long-run if they are post maintenance rather than preventative. Insurance companies reward people who take preventative steps to maintain a healthy lifestyle. One reward is lower premiums and cash back. While the cost of health insurance is high, it is most affected by the lifestyles of the unhealthiest insured persons.  Check out to find the best health insurance deal for you.  They have tons of options.