Buying Individual Health Insurance
Many Americans that have health insurance are covered by a plan through their jobs. Unfortunately some employers do not offer health insurance coverage. If this describes you then you will need to obtain private individual health insurance.Purchasing health coverage in the private market can have certain advantages. Instead of choosing from pre-selected plans , you can decide which features you would like, and choose a plan accordingly. For example, by choosing a plan that does not cover specific services, or one with a larger deductible, you might see a significant premium savings every month.
Rather than having your insurance plan tied to a specific employer, a private health plan is yours to keep no matter where you are working. An insurer can not drop you as long as you pay your premiums on time. However these advantages come with some potential disadvantages—
- Through employer plans they are normally required to insure the employee and their family members. With Individual insurance plans they can reject any applicant that is not in perfect health, or even deny coverage for pre-existing health conditions.
- Plans through an Employer can have much more coverage than Individual ones. Even if the same premium is being paid. The reason for this is mainly because a greater portion of the amount you pay goes to overhead and operational costs of the insurer. Also to pay out claims by the other insured people.
- Private insurance costs increase as you get older (in most States).
It's imperative to find a good health insurance agent, one that has your best interest at heart. Then ask the agent these important questions about the many plans you will no doubt be comparing:
- Would any pre-existing condition affect my coverage?
- If I am away from home will the plan handle the care? Family members too?
- If I go with a specific Doctor and/or hospital, will the plan cover me?
- The referral system, how does it work?
- Ask about the monthly premium, deductible, and coinsurance costs.
- Are there any other fees and charges for providers that are out-of-network?
- What are the specific benefits to this particular plan?
Buying individual health insurance can be confusing. Go about it like you would with any other important item—research your options and compare prices, and get the best advice and assistance you can, in this case, the services of a qualified insurance agent.
