Although most Americans with Health insurance are covered under an employer's plan, there are still many employers that don't have Health insurance offerings. Workers of companies not offering insurance are left to find and purchase their own private individual health insurance directly from an insurer.

There are actually several advantages to purchasing private individual health insurance:

  • Unlike those covered under an employer's plan, you won't just have a limited number of plans that were pre-selected by someone else to choose from. You, instead of your employer, get to determine what plan features are desirable and pick the plan that you see fit. By having a variety of plans available to you, such as those that don't cover services you don't want and that have higher deductibles, you can take advantage of lower premiums.
  • Since private health plans are under your control, not your employer's control, you also won't have to worry about losing your coverage if you ever want to change jobs. As long as you pay your premiums when they're due, the coverage is yours to keep and the insurer can't drop you.


However, there are also several disadvantages to private health plan coverage, for example:
  • Even if paying the same premium rates, individual plans usually provide less coverage than employer plans because individual policies have a larger percentage of the premium dollars going toward paying operational costs.
  • The premiums for private health insurance plans increase as you age in most states. Since renewal rates tend to be higher than new policy rates, you can avoid the rate hikes for awhile by changing plans as rates become higher. However, this isn't a long-term solution. Eventually, your age will make it more difficult to find an insurer and your individual policy will become more expensive.
  • Group plans are typically required to insure all employees and their family members. On the other hand, if an applicant of an individual plan doesn't have an ideal health status, then the insurer can reject the applicant.

You will also want to keep a few questions in mind to ask your agent as you compare plans:

  • What are the plan's monthly premiums, coinsurance, and deductibles?
  • What benefits does the plan offer?
  • What pre-existing conditions affect my coverage?
  • Is the doctor or hospital I want to use covered under the plan?
  • If I use out-of-network providers, will there be additional fees or charges?
  • How does the referral system operate?
  • How is care handled should I need medical services when I'm away from home?
  • Does the plan have a maximum amount it will pay over my lifetime or per year?

In closing, purchasing private market insurance isn't as complicated as it might seem, but getting the right policy will take a little effort on your part. Remember to approach it just as you would any other major purchase - research all your options, do price and benefit comparisons, and seek expert advice and assistance.

Need insurance for You, Your Family or Your Business?
We can match you to a qualified, local insurance expert!
Further Reading
Your business insurance value has no relation to your policy premium or your policy premiums, the value of your insurance portfolio related directly to the risks you insure against. If you are not an insurance expert, it is important for you to meet ...
Just as one might use a CPA to prepare their income taxes or an attorney to help them with their estate planning, many choose to use an insurance agency to write their insurance policies. This choice is mainly made because a person feels they need pr...
You're probably familiar with the basic discounts that most insurance companies offer on Homeowners coverages, such as bundling Home and Auto insurance, loyalty rewards, and installing smoke detectors and/or home security systems. However, a growing...
If your employer provides Group Health insurance, bear in mind that these plans vary widely in cost and in what they cover. Chances are that you're not aware of these facts about Group Health plans: Your plan doesn't necessarily cover you. ...
Because our agency makes sure that you and your family have the right Health coverage, you don't necessarily have to know all the esoteric terms related to it. However, it makes sense to be a knowledgeable consumer. That's why we've compiled this lis...