insurance premium

How are health insurance premiums calculated?

Q4: How are your premiums calculated?

A: In the past, it was necessary for you to answer questions about your health and everything from family history, lifestyle, jobs you’ve had, to the kitchen sink! With the new laws and ACA, premiums are calculated based on: Age, where you live, smoker or not, and household income. If your household income is at or below four times the federal poverty level, ($46,680 for a household of one, $62,920 for a household of two, $95,400 for a household of four, etc.) the cost of your plan will be reduced to make it more affordable. You also won’t have to worry about seeing your rates increase or being denied coverage based on a preexisting health condition. You cannot be turned down or charged more. Only the above four factors apply.