Factors that Drive up Health Insurance Premiums and How you Can Mitigate Them

There’s a famous saying about death and taxes being about the only things that are certain. We believe that there is another thing you can add to this saying: increasing insurance premiums.

When it comes time to renew your health insurance plan it can be a little shocking to see exactly how much your premiums will increase. If you have a good plan and don’t want to lose benefits or existing coverage, there are actually a few things you can do to stave off costly premium increases.

Here, UAE Medical Insurance, one of the largest insurance brokers in the Middle East, provides six useful tips you can employ when you go to renew your plan.

1. Know why your premiums are increasing

Before we look into tips that will actually save you money, it is important that you are actually aware of why your premiums increase each year.

In truth, there are a nearly infinite number of factors that impact the amount we pay, or the increase we will see on the cost of our health insurance. These factors will vary by region, operating situations, behaviour of people on the plan, and more.

That said, there are a number of factors that will influence the cost of health insurance regardless of your location. In fact, UMI’s global partner Pacific Prime has published a report, available here, defining four of the most consistent factors driving international health insurance premium inflation:

• New medical technology
• An imbalance of healthcare resources
• Increased compensation for healthcare professionals
• Health care overutilization

The 2017 version of the report also defines three emerging global trends that will impact what we pay for insurance in the next few years to come. It even goes on to break down premium inflation into different regions and countries which makes it a valuable tool for anyone wondering why their health insurance premiums are increasing.

2. Look into what you have covered

Aside from knowing why your premiums increase there are a number of things you can do to actually reduce your premium when it comes time to renew. The first is to review your existing plan and what it offers.

For example, if you currently have a plan that provides full cover you might find that there are things like maternity, dental, vision, outpatient care, etc. that you are not using or do not necessarily need.

Should this be the case, removing them might lead to you paying a lower premium. Of course, you do need to be careful here as adding a benefit back on once removed could lead to an even higher increase in costs.

3. Consider implementing a deductible or co-pay

A deductible is an amount you need to pay for care either on a yearly or per-treatment basis before an insurer will allow you to submit claims. On the other hand, a co-pay is a percentage you pay for each treatment when you submit a claim.

Adding one or both of these to a plan can be a surefire way to reduce your premiums. Just be aware that this means you might have to pay more for care if you see the doctor a lot.

4. Review how you pay

Believe it or not, how you pay for your health insurance could impact how much you pay. Many plans allow you to pay annually, semi-annually, by cash, by credit, etc.

In some cases, insurers will give small discounts if you pay your whole premium at once, or may even reduce the cost if you pay by credit card. It is therefore important to review your payment options as there could be something that will save you a bit of money.

5. Consider getting healthier

Ok, this is easier said than done but living a healthier life, losing the extra weight, quitting smoking, etc. could help lead to lower premiums, especially if you plan on switching plans.

We aren’t saying this will happen for all people, but it could help some people who pay higher premiums for things like pre-existing conditions, etc.

6. Don’t just automatically renew your plan

Finally, don’t just automatically renew your plan. Some insurers will actually be willing to discuss your premiums while some less scrupulous insurers will sneak large increases in without telling people, resulting in you paying more than you should.

One of the best ways to avoid this is to talk with a broker like UAE Medical Insurance. With a worldwide network of insurers they can help you review your coverage, suggest some ways you can reduce your premium, or even compare other plans on the market to see if there is a more cost effective solution out there.

About the Author

UAE Medical Insurance is a leading brokerage firm based in Dubai, and works with a network of global partners who can offer international health insurance solutions that meet a wide variety of their clients’ healthcare needs. If you need some free advice or a no obligation quote, contact them today!

Tags: Health insurance

Category: Medical Insurance