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Individual Health Insurance May Save You Money

Individual health insurance, also referred to as individual/family health insurance, is essentially private health insurance that a person or a family buys on their own, rather than relying on their employer.

Almost half of all Americans are covered by an employer’s health benefits, and another third are covered by Medicare or Medicaid (or both). Just about 6% of American citizens buy their own insurance policies on the consumer market. This covers those who buy their insurance coverage through the health insurance exchange, as well as others who shop outside of the exchange.

For certain people, purchasing private medical insurance is the best choice for health insurance since it is not available for employer-sponsored coverage or a state-run plan (CHIP, Medicaid, Medicare). Even so, though you acquire your health insurance from your job, a family/individual health insurance package can also be a way to save money.

With health care rates growing each year and companies contributing more of the expenses to their workers, your company’s health insurance might not be the best deal, particularly if you need to protect your families.

How do you shop for a better health care premium online?

If the coverage offered by your company is not affordable, you can compare prices online and see what’s available. You will select an individual market offer that provides you with the benefits you need but is less costly than the rate you pay at work.

This is rarely the case if the coverage just covers you, and your boss is expected to subsidize a decent deal of the gross plan costs provided by your work. But certain employer-sponsored programs mandate the employee to pay the entire fee of incorporating family members, so the family members will likely be better off having a different scheme.

HealthCare.gov is a safe place to go. This is the health insurance system established by the Consumer Safety and Affordable Care Act, and it is a one-stop center for private entity marketplace health insurance policies (note that the government controls the marketplace itself, but the health insurance plans are all private, from the health insurance providers you are already acquainted with).

Citizens in 38 states use HealthCare.gov to engage in individual insurance plans. All other 12 states and the District of Columbia have government exchanges, and when you pick your state, you will be led to their HealthCare.gov pages.

Premium benefits are provided in the exchange, but you’re still not eligible for them if the package provided by the company is deemed reasonable and offers a guaranteed benefit (this is valid for your family members too, whether they have coverage to the employer-sponsored plan, even if the employer-sponsored plan is only affordable for the employee’s portion of the coverage; this is known as a family glitch.

Many employer-sponsored programs are affordable and have a minimum benefit. So if you’re shopping for an individual market plan instead, the odds are high that you’re going to have to pay the whole amount for it, with no subsidies.

How Can Buying an Individual/Family Plan May Help Me?

For employees in small businesses (up to 199 workers) with family health insurance coverage, 35 percent contribute more than half of their gross family health care premiums as a payroll allowance (with the employer covering the remainder).

Since the annual family premium is more than $20,000, many workers spend more than $10,000 a year to cover them and their family. Any of these workers may do their best to buy their insurance.

For instance, Theo Sanders works with a small business selling a PPO health care package (with an annual premium of $1,500) to workers and their families. Sander’s company raised its monthly family premium share to 60 percent to lower prices, costing Sanders nearly $1,050 a month.

Sander’s wife works part-time as a library staff and has no health care coverage. They have two daughters aged 7 and 10. The four members of the family are in good shape and have a balanced lifestyle.

Get The Best Health Insurance Today

In several states, before 2014, Sanders would have considered the medically underwritten insurance on the private health care market to be much better than his work-based contract. However, the ACA prevented health insurance providers from recognizing the applicant’s previous medical condition while deciding premium prices and assessing eligibility for benefits.

Applicants are advised to seek advice and help when applying for health insurance plans. At Health Insurance Plans, we have specialized in different insurance types and we offer the best advice and help in choosing individual and health insurance plans. Reach out to us today at (833) 572-0898 for quotes for whatever form of insurance package you see fit for yourself or for your household too.

References and Resources

• HealthCare.Gov
• Understanding Health Insurance