What is it?
Individual health insurance is a type of coverage that you buy yourself, as opposed to coverage obtained through an employer or government program. It is estimated that about five percent of the population buys their own health insurance-that's more than 15 million Americans!
Who is it for?
This type of health insurance is most ideal for those who are:
-Employees of a company that does not provide health insurance benefits
-Between jobs
-Recently unemployed and find COBRA is too expensive
-Self-employed
-Recent graduates not covered under their parent's plan
What are the benefits?
The great thing about shopping for an individual health plan is the variety of plan options available to pick and choose from. With the guidance of a licensed health insurance agent, you can figure out what your needs are and how to find benefits that can meet them. Some benefits to consider are: pre-natal visits, maternity care, well-baby visits, prescription drugs, routine doctor's visits, etc. You can also decide what is more economically feasible for you: paying for a high deductible and low monthly premium or vice versa. If you recently become unemployed, an individual plan is likely cheaper than the high premium cost of continued employer coverage via COBRA.
What are the risks?
The drawback is that you pay higher premiums because you are solely responsible for your plan's premium, versus being able to share it with other employees, as with group employer coverage. Also, premiums vary from state to state because of differing state health care usage histories or certain statewide legislative requirements.
Moreover, premiums are determined by expected health care costs, so individuals who are sick, smokers, or older can expect to pay more. Individual health plans are underwritten, meaning an insurer can deny or apply exclusions/rate-ups to your policy if you have preexisting conditions.
OK, now how do you actually buy it? Buying the perfect individual health plan is a lot easier than you would think, and can be done best with the help of a licensed agent. Just enter some basic information about yourself on getinsured.com to instantly view side-by-side comparisons of plans in your zip code. Licensed agents can explain your state's law and walk you through the entire process-from shopping for plans to completing your application and receiving your policy. This service is completely free, so there's no reason why you shouldn't take advantage of it.
What impact does health care reform have on now, and in 2014?
The following changes will be implemented beginning September 2010:
-New plans must cover some preventative services without cost sharing
-Insurance companies can't drop you when you're sick, due to a mistake you made on your coverage application
-Carriers cannot impose lifetime maximums on your coverage
-New individual plans can't deny or exclude coverage to any child under age 19 due to health conditions (this includes babies born with health problems)
-If a new plan doesn't pay for services you thought were covered, you have new options to appeal the decision
Beginning in 2014, individual health plans cannot turn down individuals with a preexisting condition (including a disability).
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