Health insurance premiums do not increase during the plan year. However, there are a variety of reasons why the premium may increase (or decrease) from one year to the next. If an insurance company feels that the benefits that they are offering with a specific plan are costing them more than they expected, they may raise the rates for the same plan for the next year. Conversely, if the benefits are costing them less than expected, they can lower the rate to encourage more people to sign up for that option.
The main reason your rates are likely to go up each year however is that you are getting older. The older a person is, the more likely they will need to use more benefits. The Affordable Care Act allows insurance companies to charge up to three times more for older members on a plan than for younger members.
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The main reason your rates are likely to go up each year however is that you are getting older. The older a person is, the more likely they will need to use more benefits. The Affordable Care Act allows insurance companies to charge up to three times more for older members on a plan than for younger members.