You work in the best company out there, but your employer is not covering health insurance for you. That’s where you look for private health insurance. If your problems revolve around getting the best private health insurance, don’t you worry there. We’ve got you covered.
First, let’s know what Private Health Insurance is?
Well, private health insurance refers to a plan purchased directly rather than opting for an employer-sponsored group plan or a federally-sponsored plan from a private company.
Difference between Private Health Insurance vs Public Health Insurance
Public health insurance is backed up by a governing body, whether a federal or state government. You will find the two most known health insurance plans in America, i.e., Medicare and Medicaid. Remember that even a public health insurance plan demands a premium payment. Since it isn’t Obamacare, a Medicare health insurance plan would cover your hospital services (Plan A), but you would have to pay for the doctor’s services (Plan B).
As the name suggests, a private health insurance plan refers to private companies’ policies and are not offered by either a federal or state government. There are many ways through which you can invest in a private health insurance plan. You can directly buy a policy from an insurance company, or your employer would provide you with some sponsored plan or go into the state’s Marketplace, etc.
Both of these plans would consist of out-of-pocket costs.
How is a Private Health Insurance quote determined?
Companies decide premiums based on your age, usage of Tobacco, location and the number of people in your plan. It is essential to know that you can’t be charged a higher premium based on your gender or specific health condition, for instance, diabetes, etc.
People usually opt for employer-sponsored plans, as typically, an employer would pay for a part of health insurance, and the employee is charged the rest. According to the statistics of The Commonwealth Fund, in 2018, employees paid an annual average of $1427 for individual plans and a yearly average of $5431 for family plans. The individual monthly plan would round up to $118, and a monthly family plan would round up to $452.
If you buy a plan directly and not through your employer, then, according to eHealth Insurance, your monthly individual coverage would round up to $440, and the average cost of a family plan would round up to $1168. An individual would have to pay $5280 annually for an individual plan and $14,016 annually for a family plan.
If you’re looking into affordable health insurance quotes, the baby step would be to compare quotes from various online Marketplace or consult your insurance agent. Remember, your quotes vary due to many factors, for example, ZIP code. While reviewing, remember that every organization have their way of getting quotes, and each of them varies in their plans. Since a health insurance plan is more than just a premium. You should also consider the deductible, copayment, coinsurance and other out-of-pocket maximums.
What are the four types of health insurance plans?
The four types of health insurance plans are as follows,
- HMO, a health maintenance organization, is a network that provides health insurance coverage both monthly or annually. With an HMO, you can choose a doctor for primary care from their list of networks. If you need a specialist, you’ll require a referral from your primary care provider. If you plan to choose a provider out of the network, you would be required to pay more.
- PPO is a preferred provider organization similar to HMO, but here, you are given more flexibility. For instance, here, you do not need a referral to see a specialist other than your care provider. You can look for providers out of the list of networks, but you might be required to pay more.
- EPO: or an exclusive provider organization that combines the aspects of both HMO and PPO. You will have a more restrictive network than an HMO, but you can see a specialist other than your care provider without a referral, but the condition to see an out-of-network remains the same.
- POS: A POS is a point-of-service plan. You can see a provider from the list of networks without getting a referral, but you will require a referral to see an out-of-network provider.
Find your Private Health Insurance Plan
To find the best private health insurance plan or any health insurance, you should be clear about what you require and what you do not require. Once you figure that out, start looking for policies in your Marketplace online or connect through your insurance agent.
Collect all the information you need about a health insurance plan and look at what you are getting as coverage and what you have to pay out-of-pocket other than the premiums. Know the companies which are recognized in the field of health insurance and acquire their quotes. It’s a lot of effort, but everything is worth it when you find the right plan which exactly fits your needs and your pocket. Well, it’s a wrap from our side. Let us know what would you like to learn next.
Till then, Until next time!