Health Insurance for Individuals

By: EconomyWatch Content   Date: 8 February 2010

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With the rapid surge in the insurance industry over the past decade, private carriers have come up with a range of plans that offer health insurance for individuals. These plans are also known as private health insurance or personal health insurance plans. Simply put, they are personalized versions of group insurance policies.

Health Insurance for Individuals: Types of Plans

The most popular health insurance plans are indemnity or managed care plans. The main differences in both the plans are in relation to medical service providers, out-of-pocket expenses and the payment of bills. An indemnity plan offers greater flexibility in terms of health care providers. The insurer pays his share of the covered medical services after the submission of bills.

Managed care plans offer greater cost benefits if the insured seeks medical treatment from within the network of physicians and doctors approved by the insurer.

Health Insurance for Individuals: Essential Considerations

Essential considerations while buying health insurance for individuals include:

  • Selection of physicians: If an individual wants to continue with his family doctor, selecting from a PPO, POS or indemnity plan is the best option.
  • Healthcare needs: List out the family healthcare needs that occur on a regular basis. Also, consider the age factor and the number of dependents while selecting a healthcare plan. For example, a young earner in his 20s would prefer to buy only a catastrophic insurance plan rather than comprehensive health cover.
  • Out-of-pocket expenses: HMO is the ideal plan for a person who wants to save out-of-pocket expenses. Also consider the cover to cost ratio. The health insurance premium increases with an increase in the scope of coverage. If an individual opts for higher cover but low premium, then the deductibles and co-payments surge.
  • Need for specialists: Although most private insurers do not cover medical expenses incurred for pre-existing health conditions, there are certain policies that cover specialist treatment.
  • Cost of emergency care: Look for emergency medical care costs, including deductibles, co-payments and co-insurance, in the policy document. Avoid health insurance policies that offer limited emergency cover.

Health insurance for individuals is always expensive, as compared to group insurance plans. However, if you are not eligible for group insurance, it is always wise to invest in suitable individual healthcare cover.


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