Where You Live Can Affect Health Insurance Premiums

You are probably aware that your age and general health will determine how much you pay for health insurance, but U.S. government researchers say where you live is also a determining factor.

It has to do with how much of your premiums are picked up by your employer. The federal Agency for Healthcare Research and Quality (AHRQ) says employers in some states pay more of the premium than those in others.

Nationwide, private-sector employees with single coverage contributed 21 percent of the cost of their health insurance and employees with family coverage paid 27 percent. Health insurance premiums nationwide averaged $4,940 for single coverage and $13,871 for family coverage in 2010.

Among the 10 largest states, the annual cost of single coverage ranged from $4,669 in Ohio to $5,220 in New York and family coverage ranged from $13,083 in Ohio to $15,032 in Florida. Some 18 percent of employees with single coverage and 10 percent of employees with family coverage were not required to pay for any part of their employer-sponsored health insurance.

Living in a large state increases the likelihood that your employer will pay the entire cost of your insurance. In Illinois, for example, 12 percent of single employees paid nothing, The percentage is nearly 25 percent in California.

Significantly fewer employers pay 100 percent of costs if you cover your entire family. However, three percent of insured families in Florida pay nothing while 17.5 percent in Pennsylvania get a free ride.