Health Insurance Premium Likely to Rise In 2023

Posted on: Feb 8, 2023 | | Written by:

Health Insurance Premium Likely to Rise In 2023

Published on February 08, 2023. EST READ TIME: 4 minutes

We step into a new year with expectations of better things. We hope our income increases and our expenses stay well within our budget limit. While we can cut down on many other costs, some things are just non-negotiable, such as a health insurance policy. But what if factors like medical inflation or new regulations lead to a spike in health insurance premiums? Let’s take a look at what can be expected in 2023.

Will Health Insurance Premiums Rise In 2023?

The global economy is not in good shape, and the word ‘recession’ leads to many layoffs across organisations. This, coupled with the rising interest rates, is a sign that one can expect a rise in health insurance premiums this year. However, industry experts believe that the hike may be a marginal one. The easiest way to do check the premium is to use a health insurance premium calculator. There are plenty available online, which can be used to calculate your health insurance premium.

What Is Affecting the Premium Rates?

Health insurance helps us get quality treatment without facing any financial crunch. The increasing health insurance premiums depend on many factors as insurers try to reduce the risk factor. The insurer is forced to hike the medical insurance premium when the cost of therapy or medical equipment increases due to medical inflation. For instance, recent reports have shown that hospital room rent has increased by 3-4% in the last year. Similarly, the cost of treatment is skyrocketing as more advanced machines and procedures are being introduced to reduce the patient’s recovery time.

Another factor affecting health insurance premiums is the Covid-19 pandemic which saw many claim requests. Medical insurance companies had to pay a considerable amount in claim settlement and are now looking to make some profits in 2023 before another wave of the pandemic arrives.

What Can Help You Save Money on Insurance?

Many can be many factors affecting health insurance, and one way to tackle the rising medical insurance premiums is to find discounts. Here are a few tips:

● You can buy the health insurance policy online and eliminate the commission paid to an insurance agent.

● Do a thorough research of available products in the market, using an insurance premium calculator to see the premium charged for specific coverages, and then compare them all to select the best one.

● The health insurance premium goes up with the policyholder’s age. So, buying early is beneficial.

● Adopt healthy lifestyle choices. For example, a non-smoker pays a lesser premium than a smoker, who is more likely to get cancer.

● Make the best use of top-up covers. They provide additional coverage at a marginal cost.

● Lastly, buying long-term plans from insurers can get you good discounts on plans.

The Risk of Forgoing Health Insurance

Having no health insurance or having health insurance with inadequate coverage means that you are signing up for substantial financial losses. Any ailment and injury can land you in the hospital, and with the way healthcare costs go up, even smaller treatments can cost lakhs. You may lose your savings and end up in a debt trap. The increasing health insurance premiums should not be a reason for not investing in a good health plan. You should also keep in mind the factors affecting health insurance and then make a wise decision.

Conclusion

A health insurance policy brings peace of mind as you can get the best treatment available near your residence without worrying about expenses. If you are considering the cost of medical insurance premiums, take the help of an insurance premium calculator, which is available online, compare the plans offered by different insurance companies and make an informed decision. With the chances of premium prices increasing, you can also find ways to reduce costs.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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