• Aetna
• Assurant
• Blue Cross and Blue Shield

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• GoldenRule
• Humana

• Supplemental Medigap Insurance
• Medicare Advantage Insurance
• Blue Cross and Blue Shield

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• First Community Health Plan
• SecureHorizons by UnitedHealthcare
• Universal American
• WellCare

Information on Alabama Health Insurance Premiums

Questions and Answers about Premiums

Q. Why do companies raise premiums?

A. Insurance companies raise premiums when the cost of claims they must pay increases at a faster rate than expected. One main cause of premium increases is medical cost inflation, which measures how much more a particular procedure costs each year.

Medical Utilization, or the number of times doctors perform a procedure each year, can also cause premiums to increase.

Cost Shifting is also responsible for an increase in premiums. Cost shifting occurs when hospitals charge paying patients more money for their stay in the hospital. This offsets their cost of caring for non-paying or indigent patients.

New technologies and medical malpractice claims also increase the cost of health insurance.

Q. What do your premiums pay for?

A. Premiums help pay policyholders' claims, and other expenses, such as producers' commissions, premium taxes, and administrative expenses.

Q. How are premiums determined?

A. An insurance company considers many factors when setting premiums. Some of these include:

• Medical care costs
• Coverage
• Age of policyholder when policy is issued
• Current age
• Health
• Habits (such as smoking)
• Geographic area
• Waivers (a waiver of premium if you choose this option, you would pay more each month in premiums. In return, if you became sick and could not pay your premium, the company would pay it.)