There is no single reason for high health insurance rates. Many factors have contributed to the rising cost of health insurance underwriting and premiums, which exceed many Americans' budgets. Because of the increase in health insurance rates, many individuals and families have chosen to take their chances by going without health insurance rather than paying for high priced coverage. Finding affordable, reliable health insurance remains a challenge for the entire country.

Medical and Legal Costs

The medical and legal systems may be partly responsible for high health insurance rates. Doctors and hospitals have been criticized for ordering expensive tests and procedures that might be replaced by less expensive approaches to treatment. Fear of expensive malpractice lawsuits may prompt medical professionals to order expensive tests in order to avoid liability. The cost of paying for these services is eventually passed on to the policyholders in the form of higher premiums.

Advances in medicine have had many positive benefits on the health of Americans, but the costs of research and development may contribute to the rising cost of health care. The use of high tech diagnostic systems in hospitals and the cost of state of the art surgical techniques must be taken into consideration. While Western medicine has made great progress in recent generations, this progress comes with a price.

Pharmaceutical companies may play a part in the rising cost of health insurance. The cost of prescription medications has increase in recent years. Because insurance companies must cover these costs, consumers may eventually see the cost of medication reflected in their health insurance rates.

Insurance Company Expenditures

Insurance companies may be involved in the rising cost of health coverage. Insurers have been accused of charging their policyholders high rates in order to cover high salaries for their chief officers and costly promotional efforts. Insurance companies have also been criticized for overcharging for medical services and passing on those charges to consumers.

All participants in the health care system, from the the insurance companies to the US government, may indirectly contribute to the rise in health care costs. Insurance companies, like any other commercial entities, have responded to the costs of inflation and trends in the market. The American political system has also been implicated for failing to curb medical spending and keep high insurance rates under control.

Consumer Factors

The health of consumers may contribute to high insurance rates. Rising rates of obesity contribute to high blood pressure, Type 2 diabetes, heart disease, cancer, stroke and other serious medical conditions. In spite of increased awareness of the risks of smoking, many Americans continue to use tobacco. Smoking can increase the risk of high blood pressure, lung cancer, osteoporosis, heart disease and many other health conditions.

Preventive care and health education may improve the overall health of the population, which might eventually lower health insurance rates. With growing awareness of the lack of affordable health insurance, many insurers are making a conscious effort to offer reasonably priced coverage to their policyholders. High risk health insurance plans are available in many states for consumers who do not qualify for standard health insurance because of serious medical conditions.

Insurance companies base their rates on the level of risk that an applicant presents. Personal health factors, such as advanced age, a high body mass index, a history of smoking or a high risk occupation will result in higher rates. While some of these factors cannot be controlled, there are many modifiable factors that can reduce the cost of health insurance. Maintaining a healthy weight, avoiding tobacco and keeping up with preventive care may lower your health insurance rates.