What are the factors that affect health insurance premiums?

Building blocks with healthcare symbols

Your health insurance premiums shouldn’t exceed your budget and health insurance shouldn’t be viewed as a luxury expense but rather as a necessity to provide you with quality medical care when you need it and to save you money in the long term. There are also many different types of health insurance options you can choose from, which will differ in terms of costs and benefits. Bloom Financial Services explains the factors that affect medical aid premiums and health insurance premiums.

What is a health insurance premium?

A health insurance premium is a monthly fee you are expected to pay each month when you take out a health insurance or medical insurance policy. This amount is usually debited directly from your account. The exact cost of your premiums will vary according to the type of plan you’ve taken out. In addition, it’s important to note that your health insurance plan will not cover all your medical expenses. You will still have to settle out of pocket expenses based on the type of healthcare you receive. This could include benefit limitations or exclusions.

Factors affecting health insurance premiums

The only factor that affects a health insurance premium relates to the type of plan you choose. Momentum Health4Me offers three types of plans:

  • Health4Me Gold
  • Health4Me Silver
  • Health4Me Bronze

If you chose a basic Health4Me Bronze plan you could expect to pay less than the premium Health4Me Gold plan. However, it must be noted that the Health4Me Gold is a more comprehensive plan that offers more benefits than the Bronze plan. For a complete review of all benefits, compare all the Health4Me health insurance plans to make an informed decision. 

Factors affecting medical aid premiums

Having health insurance is so important given the rising costs of medical care in the country. It must also be remembered that there is a difference between a medical aid plan and a health insurance policy. Unlike health insurance, there are a number of factors that affect medical aid premiums, some of which include:

1. Age. One of the biggest factors that affect medical aid costs is your age. The older you are, the higher your medical aid premiums are likely to be. Health insurance, on the other hand, will offer a standard rate regardless of your age.

2. Medical history. This relates to your general health and to any pre-existing or chronic conditions you may have. Your medical aid premiums may be higher if you have certain pre-existing conditions or if you have had to undergo some types of medical treatments or surgery. The same condition does not apply to health insurance.

3. Health insurance policy term. The duration of the plan you select can also affect your medical aid premiums. The longer the policy term, the lower the premium and vice versa.

4. Body Mass Index (BMI). People with a high BMI are often at risk for developing serious illnesses and conditions, like diabetes or high blood pressure. This means their risk increases so their medical aid premiums will also be higher. However, this is also not a factor that applies to health insurance cover.

5. Lifestyle habits. Participating in high-risk activities, like adventure sports or making unhealthy choices, like smoking, which can cause serious health implications, could also increase your medical aid premiums, but again, does not apply to health insurance premiums.

6. Your domestic location. Some geographical areas have higher medical aid rates than others. This could be due to the climate, certain health issues that are more prevalent in that particular area, or even crime statistics.

Health insurance premiums are not affected by any of the common factors affecting medical aid premiums due to the fact that the limited underwriting acts as an advantage when it comes to taking out health insurance cover instead of a medical aid plan

Get affordable health insurance with excellent benefits

Speak to a consultant about the different health insurance plans that are available with Momentum Health4Me. Bloom Financial Services is committed to top-quality and affordable healthcare services to South Africans. The Health4Me Bronze plan starts at just R447 per person per month. Discover the right health insurance plan that suits your budget by contacting our offices for more information.

Medical Content Disclaimer

You understand and acknowledge that all users of the Bloom Financial Services website are responsible for their own medical care, treatment, and oversight. All content provided on the website, is for informational purposes only and does not constitute medical advice. Neither is it intended to be a substitute for an independent professional medical opinion, judgement, diagnosis or treatment.