Individual health insurance is financial coverage or protection against medical expenses related to health conditions, injuries, or illnesses. Contrary to the general concept of “individual,” this type of policy may be purchased for an adult but also include spouse, and/or related children. About 5% of the population today in the United States purchases individual health insurance from private companies for a substantially higher premium than a group rate would allow. Eight-six percent of the population is currently insured through employee-sponsored, military, or government group programs. The remaining 9% are uninsured and at risk for both medical and financial crises.
Since 60% of all bankruptcies are related to costly medical expenses, being without some form of health insurance coverage is a potentially risky proposition. Even worse, approximately 28,000 people die each year in the United States due to inadequate or too-late health care caused by lack of health insurance. While the Patient Protection and Affordable Care Act that became signed legislation in March of 2010 will address some of the problems with obtaining adequate individual health insurance, the program will not be in full effect until 2014. In the meantime, learning as much as possible about health care coverage and the programs currently available can be the first step towards obtaining adequate protection.
Individual health insurance is purchased from a broker or agent who represents one or several health insurance companies. While it is possible to choose from a variety of plans, the benefits may be less extensive, and the premiums, deductibles, and cost-sharing will be higher. By joining a group plan, the costs can be spread across more members. The individual carries the costs alone and as such, is at risk of being more expensive for the insuring company. Many individuals decide to join small group associations to take advantage of lower rates.
For those individuals who are self-employed, finding adequate health insurance can seem to be a daunting task. Buying an individually underwritten policy from a company on the open market is an option, although usually an expensive one. Joining an association is another possibility. Part of the process should involve deciding on the amount of health expense you can afford out-of-pocket. You can manage your risk by purchasing only enough insurance to cover what you cannot afford on your own budget. Choose the highest deductible that you can live with, try to avoid any policy that involves pre-existing conditions, and pay annually for the lowest premiums.
Shopping online is an easy way to compare the policies and prices of several companies from the comfort of your own home. The information is spelled out and less confusing, sometimes glossaries and guides are included, plans are easy to compare, and your privacy remains intact. Since health insurance may soon be mandatory in this country, it is never too soon to start shopping for an individual program that can meet your needs and those of your family.