Average Premium For Health Insurance - Any Idea?

What do you understand about Health Insurance?

It is an insurance coverage that pays for your medical expenses when you suffer from illnesses or accidents. Before making decision to purchase this medical insurance, many people are very concern about their investment cost - the premium. Does the premium cost a lot? Is it affordable by a normal employee? This article brings you a brief idea about the average premium for healthcare coverage.

First of all, let's see what key factors that determine the premium of the insurance.

• The type of health insurance, i.e. individual or group insurance
• The age of the policy holders
• The health status of the policy holders; whether pre-existing conditions are included or excluded
• The coverage and benefits required by the policy holders
• The specific regulations set by each of the state government
• The duration of the policy, i.e. short term or long term
• The lifestyle of the policy holders, for instance, smokers or non-smokers, alcohol drinkers or non-drinkers

Now, after knowing the factors that affect the premium, we explore further.

For group policy, the average premium for an employer to pay for his individual employee is about USD 4,800 per year. If the coverage includes the employee's family (a family of four members), the premium is at the average of USD 17, 700 annually.
Due to financial crisis, the employers who are suffering from the hard times have another option. They can opt for Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage. The employers who use COBRA will spend around USD 350 per month on premium, which is relatively low if compared with the premium of standard group policy.

On the other hand, for individual policy, the premium varies due to different needs of the individual. In the market, there are a wide range of selections offered by many insurance providers to suit different individual needs. The premium can be high if the applicants have pre-existing conditions. The cost can also be low and afforded by most of the people.

In fact, obtaining the calculation of premium precisely is quite difficult. It varies from one individual to another. It also varies from a group of people to another. However, for those who are uninsured at the moment, having a rough idea about the average cost for medical insurance is important in assisting them to allocate their budget.