High Health Insurance Costs for Women
For individuals who purchase health coverage in the individual market instead of obtaining it through an employer, premiums are determined on the basis of that individual's expected health care costs and utilization. Gender is one of the factors used by health insurers to determine premiums. According to a New York Times article published in October 2008, women are paying more for health insurance than men even when the coverage is identical. This statement is supported by statistics featured in a report issued by the National Women's Law Center in December 2008. The report revealed that insurers charged 25-year-old women from 6% to 45% more than 25-year-old men, and charged 40-year-old women from 4% to 48% more than 40-year-old men for the same plans.
Gender Rating
Gender rating occurs when different sets of rates are developed for each gender based on statistics of that gender. The basis for gender rating is that women are more expensive to care for than men. Insurers state that, in general, women use more health care services than men. They are more likely to go to the doctor, get regular checkups, and take prescription medications. In addition, there are many health care costs associated with pregnancy and childbirth, as well as complications that can occur after the birth. Critics say that gender rating is unfair and illegally discriminates against women, but health insurance companies claim eliminating gender rating would likely have the result of raising average rates for everyone.
Gender rating is currently illegal in ten states (Maine, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New York, North Dakota, Oregon and Washington) and restricted in two. California and several other states are considering legislation to ban the use of gender for individual insurance policies. At this time, there is no federal law governing the amount health insurance companies can charge in the individual market.
Tips for More Affordable Health Insurance
Following these tips may be able to help you keep your health insurance costs down:
- Increase your deductible
- Invest in a Health Savings Account
- Ask your doctor or pharmacist about switching to the generic alternatives to your prescription drugs
- Get regular physical checkups
- Quit smoking as soon as possible
- Eat healthy and excercise in order to maintain your overall health
