Which statement about health insurance premiums is correct?

The statement that premiums can vary depending on the plan and risk factors is accurate for several reasons. Health insurance premiums are determined by a range of factors including the type of plan chosen, the benefits provided, the insured individual's age, health status, gender, and geographical location. For example, a more comprehensive plan with lower out-of-pocket costs will typically have higher premiums, while a basic plan may have lower premiums but higher deductibles and copayments.

Additionally, insurers assess risk through underwriting processes, which can lead to variations in premiums based on individual health profiles. For instance, individuals with pre-existing conditions may face higher premiums compared to those in good health. This dynamic nature of premium pricing reflects the insurer's strategy to balance the costs of claims with the overall coverage provided.

This understanding of health insurance premiums is crucial for consumers to make informed decisions when selecting coverage that best fits their healthcare needs and budget.