What Determines the Premium Increases for Individual Health Insurance and How High Can They Go?
Well Anonymous this is actually a great question that we get asked time and again. The first part of your question is about Premium Increases. On individual health insurance, premiums can only be increased for an entire demographic. So for instance, they can’t target John Doe aged 40 in Miami for his own 30% increase. Either everyone gets it or nobody gets it. But, there can be multiple increases for the same region but in the different age bands. So all the 40-45 year old males might get a 15% rate increase and all 18-24 males might only get a 4% increase. Additionally, when it comes to domiciled health insurance companies (which is all of the health insurance companies that East Coast Health Insurance represents, except United Health Care) their rate increases must be approved by the state. Oftentimes this means absolutely nothing as we have seen 20% increases year over year. Health Insurance margins are pretty much constant at the industry average of 4% so that is why you might see
