For each health insurance policy, the insurance companies can price a premium on a variety of different factors. These factors are looked at during the time of application, and that is when they decide if you will be a higher or lower risk customer. Many things are looked at to determine the cost of your premium, and whether you are a high or low risk customer has a lot to do with your premiums pricing.

If you are someone with a health record that shows frequent medical issues, your premium will probably be higher because you are likely to have more doctor visits. It may sound unfair to you, but selling insurance is a business, and they will not give the same pricing to two different people if one of them has to use it more often.

Say that one person goes to the doctor twice a month, and another person goes to the doctor twice a year, their premiums will reflect that. It shows that the more often you have to use your health insurance the more it will cost the company, so naturally you will have to be charged a higher premium. However, if you are someone who needs to go to the doctor often, then do not try to go less just to receive a lower premium. You should go as often as you need, to keep yourself in good health.

In most cases, part of getting an individual health insurance plan is taking a medical exam. That is where any medically relevant information is found to determine pricing and coverage on your policy. If you did not have a medical exam, and are part of a group health insurance policy, then you probably were offered a flat rate premium, no matter how much you use the insurance.

The premium rating factors must be similarly related to the risk of being insured for the insurance company to give fair policies. So basically the more risk, the higher the premium and the lower the risk, the lower the premium. The rating variables such as, medical history and medical exams for the insurance company must be filed with the insurers regulatory agency, which may vary for each state. In each state there may be some differences in how insurance is handled and sold, so all medical services must be approved by the state. In some states the rates must be regulatory approved before they can begin to be enforced by the insurance company.