How many times can your health insurer raise your premium in1 year?

Asked on August 31, 2011 Louisiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A health insurance policy is a contract; it's terms bind both sides. That means that an insurer, during the term of a policy (i.e. during the year a typical policy is in force) may only increase the rates when and as much as and why the policy itself allows them to. Mid-year rate increases are very unusual; I don't believe I've ever seen one myself (and besides my own experience, my wife was HR Director for many years). You need to both review the policy, to see whether, when, and why the rates can be increased mid-year, and also ask your insurer as to the reason for the increase.

Note that it's the policy year, not the calendar year, which matters--the rate increases should be linked to the duration of the policy, not the calendar.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The number of times that your health insured can raise one's premium's for medical insurance within a one (1) year period of time depemds upon what the insurance premium agreement states as well as the laws of a given state where the policy is in effect for the individual or individuals insured under the policy.

As such, it is important to carefully read your insurance policy in that its terms and conditions control the obligations owed to the insured individual(s) and vice versa in the absence of conflicting state law.

As a general rule, the premium quote for a health insurance policy for an individual or group of individuals under most insurance policies purchased as well as under the insurance laws of each state is that the amount of the policy for the given year is the set amount and cannot be increased during that time period.

Good question.


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