Individual health insurance, or individual coverage, refers to health coverage you get on your own rather than through an employer or through a group plan from the government or an organization like your college or retirement community. Individual health insurance works well if you are self-employed or work part-time and do not have access to an employer’s benefits package. There are two types of individual health insurance plans: major medical plans and limited benefit plans. The following information will help you decide which plan is best for you, depending on your needs and budget.
Why have individual health insurance?
The best health insurance is one that covers you and your family as much as possible while minimizing any out-of-pocket expenses you have to cover. If you can afford it, an individual health insurance plan might be a better option than relying on your employer’s group coverage. As individuals, you and your family are less likely to face discrimination for pre-existing conditions.
The types of individual health insurance plans
Understanding how you want your plan to work will help you determine which type of health insurance is best for you. Here are some of your options: HMOs: An HMO, or a health maintenance organization, provides healthcare for individuals and families who belong to a specific network of doctors. The goal is that these plans will ensure patients see only those physicians in their network. In turn, they usually have lower monthly premiums than other types of plans.