There are several factors impacting average family health insurance cost. These family insurance prices have been steadily increasing in recent years. In fact, covered workers contribute an average of 29% of their family’s health insurance costs. As a financial professional, you should learn about some cost impacting factors to reduce insurance premiums significantly and the burden on the rest of your family. In this post, we’ll discuss a few factors impacting average family health insurance cost.
Your insurance policy’s type is one cost-impacting factor. There are five health insurance policy categories: bronze, silver, gold, platinum, and catastrophic. They are segmented by the cost-sharing relationship between you and your provider. For example, bronze plans often have the lowest premiums, but higher out-of-pocket costs when actively seeking care. Alternatively, platinum policies typically have high monthly premiums but the lowest out-of-pocket care costs and varying payment protection. Surely, mitigate family health insurance costs by remaining cognizant of your policy’s type.
A second health insurance cost impacting factor is the size of your family. Of course, the more people your plan covers, the more you need to pay. However, you can save significant capital by staying on a family insurance plan instead of purchasing individual ones. Many providers incentivize policyholders to add their spouses and other family members with robust savings opportunities. Absolutely, save significant time and money by keeping your family on one health insurance plan.
Your age is the third cost impacting factor of health insurance. Older applicants are typically charged higher premiums due to their (perceived) increased need for medical care and services. Moreover, your children reduce costs significantly by remaining on family plans until age 26. Alternatively, if you are over 65, you might be eligible for Medicaid that can further mitigate insurance costs. Of course, you may also consider owning burial insurance for seniors in addition health insurance. Certainly, impact your family insurance costs by harnessing these age requirements.
The next cost-impacting factor is your location. Many countries have one federal insurance plan for all citizens, while others have a variety that reduces prices via competition. In the US, state and federal laws govern how much providers can charge, so these requirements differ from state to state. Moreover, most providers offer lower premiums in urban locations as opposed to rural ones. Definitely, mitigate health insurance premiums using your location.
Lastly, whomever is sponsoring your insurance plan significantly impacts policy costs. The majority of enterprise and mid-size US companies offer health insurance as a benefit to employees. These businesses typically pay significant portions of their employees’ health insurance costs. However, self-employed individuals must purchase insurance policies on their own. While these direct policies often have lower monthly premiums, employees of companies pay less due to their payroll deductions. Of course, determine family health insurance costs via your plan’s sponsor.
There is a myriad of factors impacting family health insurance cost. For example, mitigate family health insurance costs by remaining cognizant of your policy’s type and fixed expense. Second, save significant time and money by keeping your family on one health insurance plan. Third, impact your family insurance costs by harnessing various age requirements. Next, mitigate health insurance premiums using your location. Finally, determine family health insurance costs via your plan’s sponsor. When wondering about factors impacting family health insurance costs, consider the factors described above.