Option 1 Health Insurance

Risky Behavior and Higher Premiums

People purchase health insurance to protect themselves. They are willing to pay small amounts, called premiums, every month so that when the need arises and there is a large amount of money that needs to be paid for medical services, the health insurance company will help by paying for the medical care.

But it is important to remember that health insurance companies are just companies. They want to make a profit. That is why they take whatever legal or ethical measures they can to minimize their costs and maximize their revenues while taking steps to protect themselves from risk.

One way that health insurance companies increase revenues, decrease costs, and protect themselves from risk is by charging people who engage in risk behavior higher monthly premiums than people who do not engage in risky behavior. For example, someone who smokes cigarettes will have a higher health insurance premium than someone who does not, all other things being equal.

Some people may call this practice unfair, but they should look at it from the health insurance companies’ perspectives. Health insurance companies are gambling on their clients not getting sick so that they do not have to pay money for the medical services. People who engage in risky behavior, like smoking, have a higher risk of needing medical care than people who do not engage in risky behavior. That is, people who engage in risky behavior are also riskier bets for the insurance companies. To compensate for the higher risk, they charge higher premiums.

Contact Option 1 Health Insurance

Choosing the right health insurance policy for you is extremely important. For more information on Texas health insurance plans and policies, contact Option 1 Health Insurance via their website.