Obesity does not just increase one's risk of contacting conditions such as diabetes and heart disease, but also serves to drive up their health insurance premiums. Even more surprising is the fact that some insurance companies will actually refuse service to especially rotund individuals. While this will change when President Obama's health care reforms, which prohibit insurance companies from refusing service to consumers with obesity and other preexisting conditions, go into effect in 2014, health insurance premiums will still be higher for obese individuals.

A health insurance company will determine whether an individual is obese by looking at their body mass index, which is computed by dividing a person's kilogram weight by their height in meters. If a person has a body mass index of 30 or more, they are considered obese and will have higher insurance premiums on their policies.

The reason that obesity results in higher health insurance premiums is because obesity brings with it an added risk for contracting a bevy of detrimental medical ailments. These conditions include heart disease, Type 2 diabetes, high blood pressure, cancer, gout, trouble breathing, strokes, and even depression. As an obese individual is more likely to cost their insurance company money, the insurance company will cut down their financial risks by charging the obese consumer more for their coverage.

These high premiums can be cut down with a group insurance plan, as the risk of insuring an obese consumer can be spread throughout a group of people who are less prone to contracting ailments. When it comes to individual insurance, however, obesity can be expected to raise insurance rates.

The good news is that obese individuals can lose weight to drive down their health insurance premiums. Proper exercise and dieting can help overweight individuals to shed their excess pounds, which will lead to a better quality of life for them as well as lower insurance premiums.

Some health insurance providers even provide incentives to entice their obese customers to slim down. This includes discounts offered to popular gyms and even providing access to weight loss support groups. The flip side of this, however, is when an individual grows obese after they have been insured. Once a health insurance provider has realized that a policyholder has grown obese, they will warn them that this factor will negatively affect their insurance rates. Oftentimes, the insurance company will give this person a specified amount of time to get into a healthier shape. If they fail to do this, their premiums will rise. In some cases, they might even get dropped from their plan.

Since obesity causes health insurance premiums to rise, obese individuals have that much more incentive to lose weight.