Why Did My Health Insurance Premium Go Up

Why Did My Health Insurance Premium Go Up?

If you have health insurance, you may have received a renewal bill and asked yourself, “Why did my insurance premium go up?” Some premium increases occur as a result of across-the-board rate increases, which happen when an insurer decides on a new rate plan for that year

Other premium increases have more to do with your situation, including your claims, medical history, or even your credit score.

Common Reasons Why Insurance Premiums Go Up

Health insurance experts use variables such as mathematics, finances, and statistics to forecast the cost of health insurance. Professionals spend a lot of time predicting how likely customers like you are to file a claim. 

The higher the probability, they can justify charging you higher insurance premiums. It’s the first of several reasons your premiums might have gone up. Let’s look at the most common reasons your health insurance premiums have increased.

Having a Claims History

A history of claims increases the odds that you’ll make another one. If you have many health problems and are constantly visiting the doctor, you are likely to get a rate increase. 

Even if you go from one health insurance company to another to save money, the new company is likely to start you out on a plan with a higher premium or put riders in the policy to compensate for your insurance claims.

Low Credit Score

Lenders evaluate your credit score, among other things, to estimate your credit risk and ability to repay a loan. As it turns out, health insurance companies also look at your credit score, but for a different reason.

They have determined that people with low credit scores are more likely not to pay their medical bills. As a result, they might charge more if you have a lower credit score (some states, including California, prohibit insurers from using credit scores when setting rates). That’s one more reason to keep an eye on your credit score and improve it. 

Health Care Is Expensive

Healthcare costs have risen dramatically in the United States over several decades. According to the Peterson Center on Healthcare and the Kaiser Family Foundation (KFF), U.S. healthcare spending rose nearly a trillion dollars from 2009 to 2019 when adjusted for inflation.

The study reported that U.S. healthcare spending during 2019 was nearly $3.8 trillion, or $11,582 per person. By 2028, these costs are expected to climb to $6.2 trillion—roughly $18,000 per person.


Increasing costs for medical services caused by a growing and aging population play a large role. But, so do other factors such as the growing number of people with chronic disease, increased costs for outpatient and emergency room care, higher premiums, and higher out-of-pocket costs.

The aging of the population affects the demand for all health care services, including hospitals and long-term care. Older persons use more health services than their younger counterparts because they have more health problems. They are also hospitalized more often and have longer lengths of stay than younger persons.

Contact Insurance Enterprise for Personal Health Insurance

If you have questions about health insurance and need quotes, contact Insurance Enterprise at 888-350-6605. Speak to a health insurance broker and find out more about getting an affordable health insurance plan.