What is a significant factor driving higher health insurance premiums for older adults?

Higher anticipated healthcare costs is a significant factor driving up health insurance premiums for older adults. As individuals age, they generally experience an increase in health issues and chronic conditions that require ongoing medical care, medications, and potentially more extensive treatments. This heightened demand for medical services translates into higher anticipated costs for insurance companies, which need to factor these expenses into their premium pricing. Consequently, insurers raise premiums to ensure that they can cover the expected increase in healthcare utilization and the associated costs for older adults. This is a fundamental aspect of how health insurance works, as it aims to balance risk and cost across different age groups and health profiles.