There are many different types of health insurance, from the plans provided by your employer to state-level programs, such as Medicaid and Medicare. But there’s also an option called individual health insurance that covers you individually, regardless of what company you work for or whether you’re retired. In this article, we’ll cover the basics of individual health insurance, including what it covers and how much it costs.
Major Plan Types
The plans available to you depend on your state, your income and how long you’ve been covered. In general, there are three major types of health insurance: an HMO (health maintenance organization), PPO (preferred provider organization) and an EPO (exclusive provider organization). HMOs require that you choose a primary care physician, who helps coordinate your care and makes referrals if necessary.
Major Out-of-Pocket Expenses
Premiums, deductibles, co-pays and co-insurance are major out-of-pocket expenses you may pay when you receive medical care or prescription drugs. While they are called out of pocket expenses, they may be paid for by your insurance company, leaving you with a smaller amount to pay. The amount you have to pay depends on whether you choose a health plan with lower premiums but higher out-of-pocket costs or one with higher premiums but lower out-of pocket costs.
Health Coverage Matters
If you’re looking for individual health insurance, you want to understand what kind of coverage you need and how much it’s going to cost. Here are a few basics to get you started.
Health Insurance When Not Employed
If you are not employed or self-employed, you may have to purchase individual health insurance. This means that if you have pre-existing conditions, then it will be difficult for you to obtain coverage. However, being self-employed allows you to buy your own health insurance plan and skip state and federal requirements for employer plans such as COBRA benefits. The downside of individual plans is that they can be expensive depending on your age and current medical conditions.
Role of Age in Individual Health Insurance Premiums
The cost of your health insurance depends on a variety of factors, including your age. Before choosing an individual health insurance plan, consider your options and what you’re looking for from a policy. Will you have any surgeries or hospital visits in the near future? Or will you only be seeking preventative care?
Tips To Save Money On Medical Care
Protecting your health doesn’t need to be pricey. To keep your medical expenses down and savings account growing, look for a health plan that works with you, not against you. If you know what to look for, individual health insurance can help ensure a healthier future for you and your family—at an affordable price. Here are five tips on how to find a plan that will lower costs without lowering quality.