Individual and Family Health Insurance

Group health insurance plans may offer more favorable rates and broader coverage, but these plans are not for everyone. A growing number of Americans have no choice but to purchase coverage through an employer-provided group plan. Others may have the option but choose to insure individually because of specific health care needs. Here is some helpful information about individual health insurance policies and how these could benefit your family:

Why Buy an Individual Health Insurance Policy?
Some people choose an individual health insurance policy because the group coverage available to them is not sufficient for their family’s needs. In most cases, holders of individual health insurance policies cannot acquire group coverage. That’s because their employer does not offer a group plan, they are unemployed or self-employed, or they are a college student. An individual health insurance plan may be the only option for these people.

Health Insurance for Families—an Essential
Uninsured medical expenses are a leading cause of family bankruptcy in America. That’s why people without access to a group plan need individual health insurance for themselves and their families.

Also, some health and medical expenses are unpredictable—you never know when an illness or injury will strike.

Others are expected:  childbirth, vision and dental care are just a few examples of the events and conditions for which health insurance coverage is essential.

Controlling Costs
Apply these ways to keep the cost of your individual health insurance down:

1. Ensure you are not eligible for a group plan. Group health plans are not exclusive to your employer. Your spouse’s employer or an organization that you are a member of, such as an alumni association, civic organization or even credit card company, may offer your family a group health insurance plan.



2. Consider raising deductibles, co-payments and coinsurance. Deductibles and co-payments refer to the amount of money you must pay out-of-pocket before your insurance company pays. Coinsurance refers to a percentage of a claim for which you are responsible (i.e., for certain expenses you may be required to pay 20 percent and the insurance company pays the balance). The more expense you can afford to handle yourself the lower your premium. Never raise deductibles, co-payments and coinsurance to a level you cannot afford to pay.



3. Review physicians and networks. Most health insurance plans include a network of care providers. These providers are considered “in network.” Your health plan likely will limit the amount it will pay for visits and treatment to an “out-of-network” provider. If you have physicians you prefer, make sure they are included in the plan’s network before you purchase the coverage.