How does a chronic illness typically affect health insurance premiums?

A chronic illness typically leads to higher premiums or limitations on coverage due to the increased healthcare needs associated with managing the condition. Insurance companies assess risk when determining premiums, and individuals with chronic illnesses are often seen as higher risk because they may require more frequent medical care, prescriptions, and specialists. As a result, insurers may adjust premiums upwards to account for these increased costs or impose limitations on certain types of coverage, such as higher deductibles or exclusions for specific treatments.

This framework reflects the broader principles of how insurers calculate risk and set premiums, emphasizing the importance of evaluating an individual’s health status when determining coverage terms.