Usually most people are accustomed to getting their healthcare coverage through their employer, or perhaps the government. But now, more and more people are turning to individual health insurance. The key to finding an affordable plan isn’t as hard as may think. InsuranceUSA.com wants you to know as much as possible so you can make an informed decision about your individual health insurance choices.


Individual Health Insurance Plans
Individual health insurance plans are numerous but there are at least four you definitely want to know about.

A Health Maintenance Organization (HMO) is one of the more affordable individual health insurance alternatives. HMOs usually have an extensive network of doctors, specialists, hospitals, and clinics, plus much more. HMO networks often encompass a wide and varying range of healthcare professionals so you’ll have convenient access to all your healthcare needs.

The Preferred Provider Organization (PPO) is a viable individual health insurance choice with the added bonus of being able to pick any doctor or specialist you want to see. PPOs cost more but are still affordable and provide comprehensive healthcare coverage with virtually unlimited options.

The coverage provided by a Health Savings Account (HSA) consists of two parts: a high-deductible individual health insurance plan and an HSA. The two combine to protect a person from high medical bills should catastrophe strike; while absorbing any high-deductible that comes with it. You will also face lower premiums and the HSA is a tax-free savings account that can be used to pay for routine trips to the doctor and prescription drugs costs.

Fee For Service (FFS) plans work like traditional individual health insurance - you seek the care you need, pay for it, and are then reimbursed for a pre-determined percentage.

Individual Health Insurance Plan Costs
Premiums are monthly payments you make to keep your individual health insurance current. Premiums are set by your insurance company and are usually determined according to criteria such as current health, age, where you live, and the nature of your work.

When you go see a doctor or seek emergency treatment your insurance usually kicks in after a certain out-of-pocket obligation has been met. This is your deductible and it is typically contingent upon your premium. The higher your deductible, the lower your premium and vice-versa.

A co-payment or co-pay is the amount you must pay out-of-pocket each time you pay your doctor a visit. An HMO usually features a lower co-payment typically $15-$20 versus PPOs who usually charge upwards of $35-$40.

Co-insurance is insurance based upon a pre-determined percentage. For example, your co-insurance is 80/20, you’re responsible for 20% of your medical bills while your individual health insurance kicks in 80%.

Why Choose an Individual Health Insurance Plan Over an Employee-Sponsored Plan?
While the majority of people still get their insurance through their employer, more and more people are seeking individual health insurance. Here are a couple of key reasons why:

Group coverage is a one-size-fits-all-take-it-or-leave-it kind of deal but your health needs may be far different than the person in the cubicle next to you. With employee-sponsored plans, you have to pay for coverage you don’t need or you may have to forgo something you do need. With individual health insurance you can pick a plan to fit your specific needs.

Also, unless you’re willing to pay for COBRA, leaving your job means losing your insurance. When you’re on an individual health insurance plan, however, your coverage stays with you for as long as you can afford it. That means not having any gaps in coverage during a layoff or when you’re in-between jobs.

How Do I Pick an Individual Health Insurance Plan that is Right for Me?
Which individual health insurance plan you choose to go with largely depends on your personal health needs, financial situation, and other individual circumstances.

Some things you may want to keep in mind are, that if you’re in good health and don’t go to the doctor very often, you may want to find something that will give you coverage just in case the unthinkable happens. You’ll likely want to start by considering an HSA coupled with a high-deductible individual health insurance plan.

For those who seek more extensive services and/or are more prone to poor health, a PPO or HMO may be your best bet. These will typically carry a lower deductible and a higher premium. Though you may not be able to use an HSA to pay for office visits and prescription drugs, your co-pay will likely only cost about $10-$40. These types of individual health insurance plans also give you comprehensive major medical coverage.

How to Find the Right Fit to Your Individual Health Insurance Needs
Think of choosing the right individual health insurance as something like picking out a new car. Before you even set foot on the dealer’s lot, you probably already have a pretty good idea what kind of car you’re looking for and how much you’re willing to spend. Of course you can buy one of the cars off the lot and that’s how employee-sponsored plans work. Even if you don’t want a sunroof, you may have to buy a sunroof but anti-lock brakes may not be available.

If you special order your car, which is a lot how individual health insurance works, you’ll be able to more precisely decide what you want and what you don’t want. So maybe you’re learning towards the big but more expensive SUV and all the protection it provides or perhaps the compact is good enough to get you from point A to point B. Regardless, just as with an individual insurance plan, you will be able to equip your new vehicle with any option that fits your particular model. And most likely, you will be able to subtract some things you probably don’t need.

Please take some time to read through all the information InsuranceUSA.com provides so you can make the best, most informed decision. And remember, if you have any questions about individual health insurance, we’re only a phone call away.