Popular Types of Individual Health Insurance Plans

If you have always been covered by a group health plan before, shopping for individual health insurance will be a learning experience. Many people think that individual insurance costs more than group, but that is not really true. Keep in mind that your old company probably paid a portion of your premiums when you had a group plan, and now you will be responsible for the entire premium. And because individual plans can cherry pick who they will cover, fairly healthy people may be find very affordable health insurance premiums on the individual market.

I think the best individual health insurance policies are ones that work with your family’s needs, budget and expectations. For instance, it will not do you much good to choose a very expensive plan if you have to cancel it after a few months because the premiums are too high. On the other hand, you do not want to only shop by price, because you may sacrifice valuable coverage.

Popular Types of Individual Health Insurance Plans

Health Savings Accounts
If you are very good at managing your money, want maximum control over health care costs, and want to avoid paying for things you do not have to pay for, then you may want to look into a higher deductible plan that works with a health savings account (HSA). H.S.A accounts have tax advantages and even earn interest, so any money that is not used for health expenses can be saved, and can even grow like any other savings account. In addition, the money can be used for a number of health related expenses, like dental and vision care, that may not be covered by many major medical plans.

I have noticed, though, that H.S.A policies and accounts tend to only work well for disciplined savers who really take control of their spending. If you never contribute to your savings plan, you will not be able to use it to pay for medical expenses.

PPO (Preferred Provider Organization)

These plans may be better for people who do not want to spend as much time and effort managing their health coverage. They include a network of medical providers who will be insured at the highest coverage amount. With a PPO, you still have the flexibility of leaving the network for services if you accept the lower coverage.

The combination of flexibility, simplicity, and high coverage rates make PPO health insurance one of the most popular types of individual health plans.

HMO (Health Maintenance Organization)

This health insurance gives even more control to the insurance company, but tends to provide fuller coverage at a low cost to the insured. In the case of an HMO, the network restrictions are very tight, and may be the only way to have medical services be covered. Most services obtained outside the network will not be covered.

Note that both HMO and PPO health plans will usually make exceptions for emergencies and certain services that are not covered by their plans. Always get non-emergency services approved in advance.

Choosing The Best Health Insurance Plan For You

In any case, the best family health insurance plan for you will probably also be determined by the area you live in. For instance, I find that people in large metro areas with lots of network providers are more satisfied with HMO plans because they can find plenty of medical providers. People in rural areas may find that their available network providers are small, so they would rather have the flexibility of a health plan that lets them leave the network.

An online health insurance quote form, which allows you to compare the local health insurance plans, is a quick and easy way to find out which companies offer competitive plans and policies in your area. In order to make a good decision, you will need to know what plans are available, what range of premiums you can afford, and what sort of policy your family would be comfortable with.

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