Personal health care expenses can be one of the highest costs for individuals and families. A personal policy is an essential coverage for persons without an employer-sponsored plan or not eligible for a government’s health plan. There are generally two types of health insurance plans available to individuals: Indemnity and Managed Care plans. The choice of plan depends on individual, family and budget needs. There are options available for those who need a budget policy to cover medical and prescription services.
Types of Health Insurance Plans for Individuals
In today’s health insurance market, the managed care options are the most popular for individuals looking to secure an affordable policy. Also known as HMOs, POS and PPO, these plans offer a network of doctors, labs and hospitals. Some plans require the policyholder to choose a Primary Doctor and to use referrals for specialty doctors. Not all plans have this requirement. These plans charge co-payments per visit, but overall expenses may be lower by using in- network doctors. Individuals are allowed to use out-of-network doctors, but are required to pay the difference in costs.
Indemnity health care plans offer policies that cover medical services for a fee. The policyholder can choose any doctor and medical facility. Some of these plans may pay upfront for medical expenses, others pay based on a reimbursement arrangement. Examples of indemnity plans include; Basic Health Plans, High-Deductible Plans and Health Savings Accounts. These plans may have higher out-of-pocket costs passed on to the policyholder.
Considerations before Buying a Personal or Individual Health Care Policy
Personal Health Care policies are alternatives for persons that are self-employed, students and people not covered under an employer or other policy. Options to consider before purchasing a personal policy include:
- Applying for a government-sponsored health plan, such as Medicare or Medicaid
- Buying into an association health care plan, like AARP, Freelancers Union and Alliance for Retired Americans
- Getting into a group plan with a spouse who is already covered
Personal Health Insurance Plans: Lower the Costs
Opt for a higher deductible - It is possible to lower the premium costs of health insurance by choosing a higher policy deductible, instead of a standard one. The downside of this option is that it increases the policyholder’s cash expenses before insurance coverage takes effect.
Participate in a managed care plan and make visits to in-network doctors and hospitals. Avoiding out-of-networks doctors when possible may reduce out-of-pocket expenses.
Search for affordable plans sponsored by associations, such as AARP.
Ask insurance companies for specific health care policies for students. Some of the companies may issue more affordable policy designed for students. Examples of these include United Health Care and Aetna students policies.
Use a multiple quotes insurance pricing service to compare costs among companies. Examples of quotes services include: healthinsurance.org, netquote and insurancequotes.org.
Find out which government and affordable private health plans may be open to individuals and families in your state. The government site HealthCare.gov allows users to search for health plans by state and by needs. The site is managed under the Affordable Care Act.
Resources:
All sites were accessed August 8, 2011.
Sylvia Cruz - Sylvia holds Bachelor and Master degrees in Business Administration with majors in Finance and Accounting. She is also a CIA - Certified ...
