The health care debate in Washington is close to an end (although state challenges to the new bill will likely continue for several months), and if there is been one major benefit to the entire struggle, it is made millions of Americans aware of the role that state and federal law plays in insurance costs. Health plans are greatly influenced by regulations, and always have been; if a state decides to prevent an insurance company from restricting its coverage in any way, it will likely affect rates. Understanding the various ways that laws interact with your health insurance coverage can be an important part of owning a policy.

Of course, different states have different laws, though there are always some of the same general rules in place. For instance, an insurance company’s ability to deny coverage is highly regulated by federal laws–it is illegal for an insurer to suddenly deny coverage for reasons that are not specified in a contract, and even some in-contract exclusions can be illegal. This is why lapses in coverage need to be avoided–the number of legal exclusions skyrocket for consumers that have had these lapses, regardless of the policy owner’s state of residency. Individual states can also regulate insurance law more specifically, for instance, by requiring employers to offer a certain amount of coverage to full-time employees. The more policies purchased in a certain state, the lower the cost of insurance in that state (as a general rule). A health insurance quote will vary depending on how restrictive your state is with its regulations.

Tax law can also greatly affect a customer’s health insurance premium. The link between taxes and premiums is much easier to see. When insurance coverage is taxed, or when a state taxes insurance companies at a relatively high rate, the cost of insurance will necessarily increase as the insurance providers try to make back the additional costs. Likewise, residents of states with low tax rates for insurance providers are able to find lower insurance costs.

Before you look at health insurance quotes, it is a good idea to brush up on state insurance law. This will help you to understand the cost of coverage in your area, and you will be able to avoid policies that might violate the law. It is also important to compare as many policies as possible, and understand all of the other factors that might affect your costs, from your personal health to your zip code. Knowing how insurance companies decide coverage and premiums is essential when trying to buy the cheapest health insurance policy possible, and a bit of research can prevent you from buying inadequate coverage for you and your family.