Is Private Insurance Good?
If your employer doesn’t provide you with health insurance as part of an employee benefits program, you may be looking at buying your own health insurance through a private health insurance company. When your employer lets you enroll in an employer-sponsored health insurance plan, they will usually cover part of your insurance premiums.
A premium is the amount of money a person or business pays to an insurance company; health insurance premiums are normally paid monthly. If you want to insure yourself, you will be paying the full cost of the premiums. Due to this, it is common to be concerned about how much it will cost to buy health insurance for yourself. Nevertheless, there are different options and different prices available to you based on the level of coverage you need.
When buying your own insurance, the process is more complicated than simply choosing a company plan, and having the premium payments come straight out of your paycheck every month.
Why You Should Buy a Private Health Insurance
If you find yourself in one of the above circumstances and lack health insurance coverage, it’s important to immediately enroll in an individual plan. From 2019, there is no longer a fine for not possessing health insurance.
For plan years through 2018, if you opt not to purchase health insurance, you could face a fee when you filed your federal taxes. This fee was known as the Individual Shared Responsibility Payment, but it is no longer effective.
Although you will not be charged a fee, you can’t predict when an accident will occur that will require medical attention. Even a small broken bone can have negative financial impacts if you are uninsured. Without insurance, medical care can be prohibitively costly.
If you buy insurance through the Health Insurance Marketplace, you may be qualified for income-based premium tax credits or cost-sharing reductions. The Health Insurance Marketplace is a platform that offers insurance plans to individuals, families, or small businesses.
The Affordable Care Act of 2010 established the marketplace as a means to achieve maximum compliance with the mandate that all U.S. residents be enrolled in health insurance. Many states provide their own marketplaces, while the federal government manages an exchange open to other states’ residents.
While you may not be able to afford the same type of plan an employer would offer you, any amount of coverage is more beneficial than being uninsured. In the event of a major accident or the unfortunate onset of a long-term illness, you will be better prepared.
Selecting the Best Insurance Plan for You
There are many types of health insurance plans, and each of these plans has many unique features.
Health Maintenance Organization (HMO)
A health maintenance organization (HMO) is a company that’s organizational structure enables them to provide insurance coverage for their subscribers through a specific network of healthcare providers.
Preferred Provider Organization (PPO)
A preferred provider organization (PPO) is a type of health insurance plan in which medical specialists and facilities provide services to subscribed to customers at reduced rates.
Short-Term Health Insurance Plans
A short-term insurance plan is a type of insurance coverage that lasts for a short time, usually for three months. Nevertheless, term lengths vary by state, and in some U.S. states, you may be eligible for a short-term plan for up to 12 months.
Catastrophic health insurance is a kind of insurance plan that is typically only available to adults ages 30 or younger. To be eligible for catastrophic coverage, you must receive a hardship exemption from the government. Catastrophic health insurance usually has lower premiums than other health insurance plans.
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