Medical Insurance Charges (2021–2025) Enhanced

By shrijeetverma13 · February 21, 2026

Datasource:

The Southeast region has both the highest average charges and highest monthly premiums. This region shows average charges of $14,735.41 and average monthly premiums of $1,227.95, making it the most expensive region across both metrics.

Obese Class II incurs the highest average insurance charges at $17,022.26, while Underweight has the lowest at $8,852.20. The cost difference between these two categories is $8,170.06.

Smokers pay dramatically higher insurance charges compared to non-smokers across all regions. On average, smokers are charged $32,050.23 while non-smokers pay $8,440.66 - a difference of $23,609.57. This means smokers pay approximately 280% more than non-smokers for their insurance coverage.

I've created a comprehensive visualization showing how average insurance charges have changed from 2021 to 2025. The chart displays both the actual average charges for each year as bars and includes a trend line to make the pattern clear.

The analysis shows how the number of children affects insurance costs. I've created two visualizations comparing average monthly premiums and total charges across different numbers of children (0 through 5).

The analysis shows the distribution of policyholders across insurance tiers and their corresponding average charges. Two visualizations were created: a pie chart showing the percentage distribution of policyholders across Bronze, Silver, Gold, and Platinum tiers, and a bar chart displaying the average charges for each tier.

The analysis shows how risk scores are distributed across different age groups through two comprehensive visualizations: a box plot and a violin plot. These charts reveal the range, median, and distribution patterns of risk scores for each age group segment.

Yes, there are significant differences between male and female policyholders in both risk scores and charges. Male policyholders have an average risk score of 3.20 compared to 2.90 for females (10.4% difference), and they pay an average of $13,975 in charges compared to $12,569.58 for females (11.2% difference).

Yes, there is clear quarterly seasonality in both new policy records and average charges. The data shows meaningful variations throughout the year, with Q2 having the highest number of new policies and Q4 showing the highest average charges.

High-risk policyholders represent 62.5% of the portfolio (835 individuals) and show distinct demographic patterns. They average 40 years old, have a BMI of 33.7 (classified as Obese Class I), and 32.8% are smokers. The most common age group is Senior-Middle (46-55 years). In comparison, low-risk policyholders are slightly younger (38 years), have significantly lower BMI (25.6), and notably, 0% are smokers.

The analysis successfully identified which regions have the highest concentration of high-risk policyholders. A bar chart was created showing the percentage of high-risk policyholders across different regions, with color coding to indicate the absolute number of high-risk individuals in each area.

There are 258 high-risk customers currently in lower insurance tiers (Bronze and Silver) who are potential candidates for tier upgrades. This breaks down to 131 customers in Bronze tier and 127 customers in Silver tier.

Among young adults aged 18-30 in the dataset, 21.4% are smokers (95 out of 443 individuals). Smokers in this age group face significantly higher average charges of $27,528.08 compared to just $4,470.42 for non-smokers.

The BMI-age interaction shows moderate positive correlations with both charges and risk score. The correlation with charges is 0.3342, while the correlation with risk score is slightly stronger at 0.3666.

The combination that leads to the highest medical charges is smokers with Obese Class III BMI in the Senior-Middle age group (46-55 years), averaging $49,817.58 per person.

I've analyzed the ratio of monthly premium estimates to charges across different insurance tiers. The analysis includes a bar chart showing the mean ratio for each tier, along with a detailed table displaying mean ratios, median ratios, average premiums, average charges, and the number of records in each tier.

The Northwest region shows the fastest growth in policyholder count year-over-year, with an average growth rate of 6.17%.

Only 7 policyholders out of the entire dataset have charges exceeding $50,000, representing just 0.5% of all policyholders. These individuals share distinct characteristics that set them apart from the general population.