If you work for a large company, it’s likely your employer offers health insurance through a group plan. While this may be enough for you, a group plan has some drawbacks. When something is standardized, it leaves little room for flexibility so you may find yourself paying for things you feel should be covered by health insurance. There are only so many things you can do with an employee sponsored plan and if you leave the company, your health insurance is null and void. If you want the flexibility of choice, look into an individual health insurance plan. Instead of being insured through a group, as you are in the workplace, you can work one on one with an insurance company to tailor a plan that suits your needs.
Benefits of Individual Health Insurance
There are some who may get nervous at the thought of buying private health insurance but that’s only because it’s not the norm. For years, people have relied on employee sponsored programs but during the last ten years, they have realized the insecurity of their health insurance plans and their jobs. If you lose your job and simultaneously lose your health insurance, that can spell disaster as the added stress strains your health. With individual health insurance, you don’t have to feel trapped by a job either. Maybe you plan on launching your own business or are in between jobs. You can still apply for private health insurance. Another positive is that your premiums are set on the amount of risk that you pose. This may not seem good at all but with a group plan, your premiums are set as a group. This means that even those who pose little risk pay more than necessary. If you’re worried about the expenses try to look on the positive side. You have complete freedom to tailor your plan. This can help save you money and when you are researching plans, be sure to shop around like you would for car insurance.
How Does Health Insurance for IndividualsWork?
When you buy individual health insurance, you are going to be in for a much different experience than you experience with your employer. It may be a little stressful but it’s very possible to buy a plan that works for you. You just have to keep a few things in mind first. If you leave your workplace, you may be offered COBRA which is a law that allows you to keep your employer plan and pay for the premium. Take advantage of this offer, if possible, while you shop around to avoid a lapse in coverage. While shopping, check out reputable websites and compare different plans. Health insurance is regulated on state level and some have different regulations than others which can affect pricing. Check to see what your state standards are and then be prepared to pay. While a private health insurance plan can be suited specifically for you, this can be a positive or negative thing. Insurance companies can still deny coverage for pre-existing conditions and if you have a history of medical conditions, your premiums are going to be much higher. For employee plans, premiums are usually higher than individual plans but the company is footing the majority of the bill. With an individual plan, you are responsible for each monthly payment. This can vary from $200/month all the way up to $1000+. If money is of no object for you, paying for individual health insurance may not be a problem but many people, especially if already unemployed will find it to be a struggle. You can lower your price by raising your deductible but if you require medical coverage, be ready to pay that amount of pocket.
Whether you’re in a sturdy job, self-employed, unemployed, or working with a small business, you must have health insurance. It may not seem like fun at all but it’s of the utmost importance because you never know when you might need medical attention. Doctor and medical bills can quickly pile up so it’s best to spend the monthly money on a health insurance plan rather than having to pay the hospital even more for years.