11.3.2 Premium Factors
Premiums for health insurance are paid regularly for annually renewable benefits. That is, health coverage is subject to change year to year and premiums are subject to increases year to year. The most common form of premium payments is through employee payroll deductions. Deductions are made to the employee's paycheck before the employee even receives the check.
Though there are other factors, following are the main factors that influence the computation of health insurance premiums.
- Interest
- Expenses
- Types of benefits
- Morbidity
- Claims experience
- Insured's age, sex, and occupation
