Private Health Coverage

By: EconomyWatch Content   Date: 24 February 2010

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Private health coverage is more popular in the US than government and employer sponsored coverage plans. This is apparent from the fact that 67.5% of the American population was covered under varied private health coverage plans in 2007. In this type of insurance, the insured pays a premium to the insurance company for the chosen health coverage. The amount of premium can vary to a great degree, even when some options are mandatory to be covered in some states.

 

In some countries, the insured is not required to pay a premium for coverage. Some other countries provide people access to basic medical care under government sponsored health care insurance. For instance, in Canada, citizens are provided basic care and can also enjoy private insurance coverage for options not covered under the government sponsored plans. These options could be cosmetic procedures, prescription drugs and voluntary surgeries not necessarily required.

Private Health Coverage: Pre-Existing Conditions

Pre-existing medical conditions of an individual are taken into consideration by private insurance companies while processing insurance applications. Your application may even be denied on the basis of your existing health conditions, which could include cancer, heart diseases, diabetes and even obesity. However, the decision may be state specific. For instance, New York and Massachusetts allow people suffering from pre-existing conditions to enjoy the benefits of private health coverage. However, in other states, you must undergo a medical examination before being provided coverage.

 

The amount of premium is decided on the basis of the findings of the physical test. Those who are denied insurance by private companies may consider buying group insurance through an organization they are associated with. They can also be members of a union or professional association. The aim of these organizations is to offer affordable group health coverage.

Private Health Coverage: Age

The cost of health coverage is higher for individuals in their fifties than those who are in their twenties. This is because younger people are likely to have better health than those who are older. The same applies to the amount of premium.

 

Private Health Coverage: COBRA

The Consolidated Omnibus Budget Reconciliation Act of 1986 enables people who have lost their job to enjoy the benefits of insurance provided by their previous employer. This can be possible for 18 months from the date of resignation.


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