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

Best Health Insurance in Arkansas

Private health insurance may get complicated when navigating by yourself.

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

Private vs. Public Health Insurance

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

• Private  Private health insurance is insurance that isn’t allowed by the federal or state government. You can acquire private health insurance through an employer, through your state’s Marketplace, or directly from an insurance company.
• Public  Public health insurance is financed and supported by a federal or state government. In the U.S., the two most essential public health insurance policies are Medicare and Medicaid. It’s necessary to note that you may have to pay for public health insurance. For instance, people with Medicare pay a premium for Part B.

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

How Much Does Private Health Insurance Cost?

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

• Whether you use tobacco: Smoking increases the risk of developing health issues. 
• Your age: The older we are, the likelier we are to require healthcare. To account for this, insurance firms charge higher premiums to more senior plan members. 
• Your location: Where you live has an impact on your health. It also affects how much competition there is among insurance companies and how costly it is to provide healthcare. 
• The number of people on your plan: An individual plan is cheaper than a family plan. 

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

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

The expense of purchasing private health insurance is considerably more expensive.

Private health insurance purchased on your own (not through an employer) is substantially more expensive. According to eHealth insurance, the average cost of an individual plan bought on your own is $440 per month. The average price of a family plan is $1,168. This goes up to $5,280 per year for a single person and $14,016 per year for a family. 

The first step to getting 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 selections, keep in mind that every insurance company determines its rates differently. The cost of health insurance is about more than just your premium, however. Here are a few other prices to consider:

• Deductible  Your deductible has a significant influence on your health costs. Your deductible is the money you pay for covered health care before your plan starts paying. According to eHealth insurance, the average deductible in 2018 was $4,328 for an individual plan and $8.352 for a family plan.
• Copayment  Your copayment, or copay, is a fixed amount of money that you pay for a service. You might have a $10 copay for a doctor’s consultation and a $20 copay for a specialist visit.
• Coinsurance Coinsurance is like a copay, but rather than paying a fixed amount, you pay a percentage of the cost. If your plan has a 20% coinsurance and your doctor visit costs $200, you would pay $40.
• Out-of-Pocket Maximum  Your out-of-pocket maximum is the most you would pay out-of-pocket in one year. This total doesn’t include your premiums. Plans sold on your state’s health insurance Marketplace have a maximum out-of-pocket limit of $8,200 for individual projects as of 2020. The maximum out-of-pocket limit for family plans is $16,400.

Resources and References:

• Health Insurance Plans
• Deductibles