FAQs_Health_Insurance_Rates > Health Insurance Costs
What factors can cause health insurance rates to increase?
Rates are driven in large part by medical spending. Medical costs can go up for many reasons, including increases in physician or laboratory charges, more use of health care services, new technologies, prescription drugs, an aging population, and unhealthy lifestyles. A company also may change its rates because of its financial situation. Premiums must be high enough to cover its projected claims and administrative costs.