There are many variables that affect how much you will pay for health insurance, some of them rather obvious while others are less though though equally important. One of them has to do with the California health insurance quoting systems and more importantly, the carrier\’s systems in general. Let\’s find out how the age of the younger spouse might affect the rate you are quoted for health insurance and make sure we get the absolute best rates available. On to the case of the younger spouse (not yet in bookstores).

California health insurance is based on plan selection (level of benefits), area (zip codes are generally lumped together making up a about 10-15 areas depending on the carrier) and of course, age. Age is the biggest factor in determining your health rates. Even with the new Health Reform mandates that dictate no greater than 4 to 1 for the maximum age rate to the minimum age rate (which will essentially bring down older rages…say from age 50-64 and raise younger rates from 0-50), age is still biggest factor for the simple reason that health care expenditures roughly double with each passing decade of a person\’s life. The difference in cost between a 35 year old and 45 year old can be significant as we\’ve all experienced when we enter a new age band. One note, health insurance is not like life insurance where you buy into a rate based on the age at time of enrollment. California health insurance rates generally increase in 5 year band (for most carriers) so your rate will increase say when you turn age 50 (going from age band 45-49 to 50-54). There\’s not much we can do about that (or death and taxes) but what\’s the connection to getting the best rates available?

When you run your quote, make sure to list the younger spouse as the primary applicant. For some California health carriers, they will base the rate on whatever age you put in for that primary applicant even if it\’s higher. In fact, these same carrier\’s systems including the online health application are not able to parse out the younger aged spouse and will base the rate on the age entered for the primary. There\’s no implication in terms of the actual coverage to having one spouse listed as a primary applicant versus the other but it can significantly impact the quote and cost you pay for coverage. Seeing quotes and census information day in and day out, there are many situations where the age split can be 5 or 10 years between two spouses and that trend is only growing. Even in a situation where the age split is only 1-2 years, there can be a difference since one spouse might be 48 while the other is 50. If you list the 48 year old as the primary, the rate will be significantly lower than listing the 50 year for the exact same coverage. Why is this the case?

Our opinion (and it\’s only that) is that it\’s a systems issue with the carriers in question as other carriers have figured it out and the system will automatically base the quote on the age of the younger spouse regardless of who is entered first. This is how it should be. Clearly, the claims experience which drives rates would be the same an average couple age 45 and 55. Those carriers could argue that their rates will then be cheaper for the older age band but long term, that\’s not a good business strategy to being competitive in the market. Clearly these decisions above our heads but our goal is to make sure you can compare apples and apples when quoting California health insurance. There are many times where a better plan will look more expensive just based on the age issue mentioned above. Avoid this and list the younger spouse as the primary applicant.

Dennis Jarvis is a licensed California health insurance agent with extensive knowledge of the Individual California health market. affordable California health insurance

Dennis Jarvis is a licensed California health insurance agent with extensive knowledge of the Individual and Small Group California health insurance market. http://www.calhealth.net

Author Bio: Dennis Jarvis is a licensed California health insurance agent with extensive knowledge of the Individual California health market. affordable California health insurance

Category: Finances
Keywords: california health insurance, california health quote,individual california health insurance quote