1. Why do my health insurance premiums go up each year?
2. What is medical questionnaire underwriting?
3. What is moratorium type underwriting?
1. Why do my health insurance premiums go up each year? Insurance premiums are based on the collective results of all insured customers.
You are one of thousands of policyholders that are insured by Health Insurance Company.
Not all customers will have claims each year; this is what keeps annual-premium-increases manageable.
If all customers had claims every year, your insurance premiums will increase by a higher percentage.
The increase in premiums is determined by the collective customer claims that occurred during the previous policy year.
Even if you had no claims, your premiums will still go up by a small percentage.
The cost of insuring your family is averaged out among all customers insured by the company.
If you had a million dollar claim, you can expect a small incremental increase in premium the next year; the insurance company would not ask you to repay the million dollars.
The annual increase in premium would be the same for all other customers in the same age group that you belong to; you will not be penalized for your claim.
On the other hand; if you had no claims in one year, it would not make you eligible to pay the same premium as the previous year.
Four important factors that cause premiums to go up each year:
1.Hospitals increase their medical charges each year.
2.The price of drugs goes up each year.
3.As you get older, you pose a higher risk to the insurance company.
4.In addition to this; as you get older, the cost of treating you will rise exponentially if you have to go to the hospital for treatment.
This health insurance company; like most other health insurance companies charges premiums according to the customer age.
The premiums are usually split into 5-year age groups.
When you started your policy, you were in one age group.
As you get older, you move to a higher age group; you will notice a higher jump in the premium increase when you move to higher age groups.
Each year, health insurance companies have to revise their premiums based on the past year’s claims expenses.
If all the customers had a higher incidence of claims, the premiums have a higher annual-incremental increase.
When hospitals increase their medical charges, the premiums have to go up.
Health insurance companies are not a charitable organization; they do their best to make a minimal profit.
Health insurance profit margins are small, usually between 5% to 10%.
Insurance companies that make more than 10% profit are not competitive and cannot keep customers.
Unfortunately, there is nothing the insurance companies can do to control the hospital medical charges; all hospitals try their best to charge as much as possible for their services.
Compared to other health insurance companies, this insurance company is still reasonable in the premium rates they charge for the level of cover they offer.
If you are able to find a better offer, please send information on this company so our research department can investigate.
E & I Insurance Brokers specialize in health insurance; we do our best to stay current with all the choices available to our customers.
There are many cheaper alternatives available; but be aware that not all insurance companies are reputable.
2. What is medical questionnaire underwriting? You must complete a medical questionnaire with your private medical application. Your good faith is important. You can enter inside the expatriate health plan without exclusion if you have a good health or with partial, total exclusion or with loading premium. If they would like pre- existing medical conditions to be included, this will apply above all to the questions concerning the present state of health, past or present illnesses, disorders and symptoms, as well as treatment. This process of accession is longer and more complicated and requires medical records. Each insurance company appreciates its risk. It depends on the ratio of premium /claims by country and area of cover.
You must also negotiate with companies on exclusions and the appreciation of risks and provide some concrete medical evidence. Protection for the consumer is more important if you apply with a medical questionnaire.
3. What is moratorium type underwriting? This is a common form of underwriting used by private international health insurance companies. It covers each individual, family, small group under a policy excluding any medical conditions that have been treated with advice, treatment or medication in the five years preceding the date of the insurance. The moratorium is defined as a qualifying period of 24 months for treatment costs attributable to an existing medical condition and its consequences. After a continuous insurance period of 24 months, private health insurance companies will reimburse the eligible expenses incurred for existing medical conditions if the insured person did not suffer any symptoms and did not require treatment, and did not receive or require any medication during this 24-month period of moratorium. If the insured submits a request for reimbursement for care, it will be reviewed by the insurance company. The insurance company will consider whether or not the patient had a medical history and whether the symptoms are before the date of the subscription.
The subscription for an insured is easy with the moratorium. It may even make the purchase online as travel insurance without formalities. This process still requires a special attention. Private insurance companies take advantage of the moratorium to avoid paying claims and bear the burden of proof to the insured. The insured must justify in many cases with medical evidence that he did not have a medical history. The date of subscription is also often a source of conflict. In addition to having no medical history; determining a disease that happens unannounced is very complicated. The insured must be proving his good faith. It may be also difficult for individuals to initiate an action in a court against a company with a head office in countries where consumer’s rights do not exist.
Our advice in this case is to provide with its application medical records with a complete check up. Legal line will be defined.