Get More Benefits &
Save More! Call For
More Info Today

Cost of Best Private Health Insurance in Alabama

Life is full of puzzles. Is a hot dog a sandwich? Why is ranch dressing so popular? Why is health insurance so confusing? While we can’t say why health insurance is so complicated, we can shed some light on private health insurance (also known as Private medical insurance). Read on to learn what it is, how to buy a policy and which plans are the best.

Difference Between Private and Public Health Insurance

What’s the difference between private and public health insurance? Let’s take a closer look.

• Public  Public health insurance is funded and supported by a federal or state government. In the U.S., the 2 most common public health insurance plans are Medicare and Medicaid. It’s important to note that you may have to pay for public health insurance. For example, people with Medicare pay a premium for Part B.
• Private  Private health insurance is insurance that isn’t offered by the federal or state government. You can purchase private health insurance through an employer, through your state’s Marketplace or directly from an insurance company.

Both types of health insurance have out-of-pocket costs.

How Much Does Private Health Insurance Cost?

Insurance companies decide on premiums based on several factors. These include:

• Your Age  The older we are, the more likely we are to need healthcare. To account for this, insurance companies charge higher premiums to older plan members.
• Whether you use Tobacco  Smoking and using tobacco increases the risk of developing health issues.
• Your Location  Where you live has an impact on your health. It also impacts how much competition there is among insurance companies and how expensive it is to provide healthcare.
• The Number of People on your Plan  An individual plan is less expensive than a family plan.

Insurance companies can’t charge you a higher premium based on your gender or on your specific health history. You can’t be charged a higher rate if you have diabetes, for example.

Many people get private health insurance through an employer. Employers typically pay for part of the costs of health insurance and employees pay for the rest. Employees paid an average of $1,427 annually for individual coverage in 2018, according to The Commonwealth Fund. They paid an average of $5,431 for a family plan. This comes to $118 per month for an individual plan and $452 per month for a family plan.

Private health insurance purchased on your own (not through an employer) is significantly more expensive. According to Health Insurance, the average cost of an individual plan purchased on your own is $440 per month. The average cost of a family plan is $1,168. This comes to $5,280 per year for an individual and $14,016 per year for a family.

The first step to finding affordable health insurance is getting multiple quotes. Here at Health Insurance Plans, we have a simple tool that allows you to get quotes fast by entering your ZIP code. As you review your quotes, keep in mind that every insurance company determines its rates differently. The cost of health insurance is about more than just your premium, though.

HMO vs. PPO vs. EPO vs. POS

Another factor to consider when it comes to how to get health insurance is the plan type. Here are the 4 most common types of plans:

• HMO An HMO is a health maintenance organization. With an HMO, you choose a primary care doctor. If you need to see a specialist, you typically need to get a referral from your primary care provider. HMOs have a provider network. You may not be able to see providers outside of your network. If your plan allows you to see out-of-network providers, you will have to pay more.
• PPO  A PPO is a preferred provider organization. It allows you more flexibility than an HMO. You typically don’t need a referral to see a specialist. You can see providers outside of the provider network, but you will pay a bit more.
• EPO  And EPO is an exclusive provider organization. It combines aspects of an HMO and a PPO. You have the more restrictive network associated with an HMO. If you see an out-of-network provider, you pay significantly more. You also have the freedom to see specialists without a referral.
• POS  A POS is a point-of-service plan. You can see any provider in your network without getting a referral. If you want to see an out-of-network provider, you do need a referral.

Call for your Quote Today

Stop waiting around! The right insurance provider is out there and we’re going to make sure you’re covered for the foreseeable future. Accidents can happen any time whether it’s day, night, workdays, or holidays. Insurance is the best way to prepare for the unpredictable, and a great way to secure your peace of mind. Give us a call today or fill out the form for a quote – you’ll be glad you did!

Resources and References:

• Medicare and Medicaid Difference
• The Commonwealth Fund