Russia Health Insurance Premiums
Depending on the Russian insurance company you choose to work with the premium you pay for your policy can be calculated in several ways.
Some medical insurance providers initially set a very low yearly premium, yet if the insured starts filing claims the yearly premium very quickly increases. In a situation like this your premium is calculated based on your prior medical claims experience; which is why the policy may be fairly inexpensive at first blush – you will have had no claims experience with the company of plan.
Other, more reputable insurers, will often calculate the plan premium on a community basis. This can be quite a complex concept to understand but essentially works as follows:
A community rating for a Russian health insurance premium will ensure that you always pay the same premium as all other individuals of your age, with the same plan benefits, who have coverage in the same geographical area of coverage. This is why many insurers will ask for Age and Country of Coverage when you submit an application for a policy.
With a community rating you receive the assurance that your Russian health insurance premium will never rise because you have made a claim under the policy. This is not to say, however, that the premium will remain constant over the lifetime of the policy, as the insurers will often factor in the “risk” associated with age and the current rate of medical inflation in your area of coverage; but does ensure that any premium rises are much more manageable than if you had elected to obtain a history rated plan.
Premium Payment Options
There are typically a number of options afforded to a policyholder with regards to how they would like to settle their health insurance premium.
It is normal for premiums to be accepted in a number of major currencies, including RUB, USD, CNY, HKD, EUR, and more. It can also be possible for you to choose the method in which you make the payment, with most Russian health insurers offering options for Cash, Cheque, Bank Transfer or Credit Card payments.
Furthermore, you can often choose the frequency of your payments in order to ensure that you are managing your finances correctly. Payments can usually be made Annually, Semi-annually, Quarterly, or Monthly.
It should be noted that if you opt to pay in any frequency other than Annually, that there may be an additional surcharge levied on your premium; often in the region of 5 – 10%.
Premiums and Renewals
When you renew your Russian health insurance plan you will have to pay a premium (fee) for the next year of coverage. As explained above there are typically two types of premium calculation which will occur in the Russian insurance industry; Experience Rated, or Community Rated.
If you choose an experience rated plan your premium will often remain very similar to the previous years’ if you have not received or claimed for any medical treatment. However, in the event that you claim for treatment under the policy, with an experience rated plan you can often except to pay substantially higher premiums for your coverage upon renewal of the policy.
On the other hand, if you choose to obtain a community rated product, then your premium will only increase as you age, and as the levels of medical inflation (the fees you pay for medical services) in your area increase. Community rated plans will not factor your medical history when looking at a renewal premium – giving you the assurance that you will always be paying the same premium as all other individuals of the same age, with the same coverage benefits, in the same geographical area of coverage. Additionally, because medical inflation is fairly constant at roughly 15% per year, a community rated premium allows for a much more manageable forecast of premium increases than one which is experience rated.
Furthermore, it is important to understand your limits as to how long you are able to renew a policy for – it can be quite a surprise to some individuals who have been paying premiums for many years when they are no longer offered a renewal option on their policy. Many plans will actually cap the option to renew at 65 years of age, after which the policyholder can no longer receive coverage even if they were prepared to pay the plan premium. However, there are also a myriad of choices which can provide lifetime renewal guarantees with no cutoff dates – ensuring that the policyholder can continue receiving coverage for as long as they need it.
With the options available it is important that you fully understand the limits of your policy, whether it is experience or community rated, and whether you will be able to renew the plan as you need it. Take the time to talk to your provider and read through all the policy documents before you enroll in a policy that may not be in your best interests.
Russia Health Insurance Information
If you would like to know more about premium calculations or premium payment options in Russia please contact Russia Health Insurance now. You can also request additional clarification by completing the short form at the top of this page. Our advisors will be able to help you find all the necessary information in order for you to make a well-informed decision when purchasing you health insurance plan.