How are Individual Health Insurance Premiums Calculated?
The state allows for private health insurers to set their premiums at whatever rate they see fit, hoping that market competition will help keep them at a reasonable cost. Your insurer will take many factors into consideration when determining your rate, including age, health, and plan type. There are no laws or restrictions regarding what an individual can be charged for a policy or exclusions on the reasons for quoting a high premium. When it is time to renew your policy, your insurer also has the right to raise your premium for any reason. The good news for health insurance customers is that their provider cannot cancel their policy because they get sick, even at renewal. They can, however, raise your premium to compensate for this increased risk.
