Individual Health Plans Explained | Health Plan Options Today

Individual Health Plans Explained

Health insurance is vital for individuals as well as families because medical expenses are inevitable. Understanding the different types of health insurance will help you understand the plans you qualify for and will help you determine the best option for you. 

The Individual Advantage

Individual health insurance is a health plan that people buy on their own without the involvement of employers or through programs run by the government such as Medicaid, Medicare, or CHIP. Private insurance companies and insurance brokers offer a variety of individual health insurance plans to people who qualify for it. 

These types of plans are great for people who retire before they are eligible for Medicare, for self-employed individuals, or for those who work for small businesses that do not offer employee health benefits.

The Difference Between Individual Health Plans and Other Plans

Health Insurance has become one of the building blocks of American life.

Until 2014, individual health insurance was cheaper than group coverage plans because it was medically guaranteed in most states, but this made it hard for people who had pre-existing conditions to access health coverage. Individual plans also covered much less than group coverages- for example, many individual plans excluded maternity care. 

After 2014, Affordable Care Act reforms led to a reduction in the differences between employer-sponsored and individual health coverage. One major reform was the introduction of “essential health benefits”, part of which stated that medical history could no longer determine eligibility or premium prices. 

Even today, you may still find more broad provider networks and Preferred Provider Organizations (PPO) in employer-sponsored plans than with some individual plans. HMOs (Health Maintenance Organizations) and EPOs (Exclusive Provider Organizations) which offer services within a localized area, are more common in individual health plans than they are with job-sponsored plans. 

Different Types of Private Insurance Plans

Private individual health plans come in various types, and the freedom to choose your provider gives you the choice of finding insurance based upon your budget and the type of healthcare you may need in the future. For example, certain plans may be better than others for people who are planning to start a family soon.

How Much Do Individual Health Plans Cost?

The price of individual health insurance per month varies depending on several factors. Some considerations such as the applicant’s age, location, and whether or not they smoke are some of the parameters used to determine premiums. The average premium cost for an individual health insurance coverage in 2020 was $575 per month. Most enrollees or these premiums receive tax credits and subsidies averaging to $491 per month, meaning that the government covered the majority of the average premium. 

If you compare this with the monthly premiums for employer-sponsored insurance, the prices are different. Coverage for one employee was $623. The employer covers $519 on average, and the employee pays the remaining $104. 

Where Can I Get The Best Price for Individual Health Insurance?

The team at HealthPlanOptionsToday is staffed with trained experts who are trained to help everyday people get the best price available for quality health insurance. They will take some time to get to understand your individual situation, and will walk you through every option available in order to find you the best plan. Click the button below or call our hotline at 855-218-3447 to begin finding the best health insurance price for you.

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