Health Insurance premiums increase every year due to the following :

  • Global cost of medical treatments increase annually
  • Hospitals increase their medical costs each year.
  • The price of medications go up each year.

You pose a higher risk to the insurance company as you get older, in addition, the cost of treating you will rise considerably if you have to have treatment at a  hospital. All health insurance companies charge premiums according to the customer age / age band and these premiums are normally split into 5-year age groups.

As you get older, you will move to a higher age group and you will notice a higher jump in the premium increase when you move. Each year, health insurance companies have to revise their premiums based on the previous 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. Most Health insurance companies try to keep their premiums as reasonable as possible in light of helping their clients, and as well as making some profit. There is nothing that 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.

Cheaper options are available but work with your Health Insurance Broker, so that you do not place yourself in a disadvantaged position.