Individual health insurance is purchased outside of employer offered health coverage. This type of health insurance can be more expensive than a group health plan, because it uses only your health information, and coverage needs to determine a monthly premium. The benefits of an individual plan include good options for tailoring health coverage and the ability to manage your plan personally without the need to go through your employer.
Keeping Your Own Doctor
A health maintenance organization (HMO) plan requires you to visit doctors in the insurance company's network. If your family doctor doesn't participate with the network, no visits or procedures performed by the doctor are covered. This means you have to pay cash--usually upfront. A preferred provider organization or PPO plan allows you to choose the doctor you want to see for care without restrictions in coverage.
Anticipated Care Needs
Private health insurance involves comparing the cost of coverage versus the frequency of using that coverage. If you anticipate not needing to use your health insurance coverage often, you may consider purchasing a catastrophic illness or injury plan. This can save you money on your monthly premium, but you'll also have to pay out-of-pocket for visits to the doctor if you catch a more mundane illness. An HMO can provide more cost-effective health insurance if you're older or have children and require more frequent use of your health care plan.
Groups Rates For Individuals
Some states, including Colorado, Michigan, Delaware and Mississippi allow the owner of a small business to obtain health insurance as a group of one. This can allow you to purchase individual health insurance at a discounted group rate. You may also qualify for a group rate if you own a business and have one other employee or partner. For example, if your spouse does bookkeeping for the business, that counts as a group for health insurance purposes. A full list of states with guaranteed small business group rate plans can be obtained by visiting the State Health Facts website.
Coverages and Procedures
Prescription drug coverage is the most commonly used feature of health care plans across the country, according to Insure.com. Having this coverage on your individual health insurance plan can save you hundreds of dollars, if you have a chronic illness or contract and illness requiring powerful medication. Look over your insurance plan to make certain hospital procedures like X-rays are covered. Not having these procedures covered by your plan could cost you thousands of dollars.
