Individual health insurance is insurance that covers only the individual policyholder. It may be purchased as an individual plan or through a group plan. Individual health insurance plans are usually more expensive than group plans because they must pay out claims to a wider range of individuals.
Individual Health Insurance: A Comprehensive Guide to Securing Your Health
Individual health insurance is insurance that covers only the individual policyholder. It may be purchased as an individual plan or through a group plan. Individual health insurance plans are usually more expensive than group plans because they must pay out claims to a wider range of individuals.
Individual health insurance is a type of health-coverage plan that can be purchased on your own and used to supplement the benefits provided through an employer or government program. It may be less expensive than other forms of coverage, but it also has its drawbacks.
An individual health insurance policy is designed for people who don’t have access to another form of coverage and may not need as many benefits as those offered by other types of plans. For example, if you’re healthy and don’t anticipate needing a lot of healthcare services in the future, an individual policy might provide adequate coverage at a much lower cost than what you’d get through group coverage or an employer’s plan.
However, if you do have pre-existing conditions, then individual health insurance may not be an option for you at all — or it may be priced so high that it doesn’t make financial sense to purchase it. You may also be able to avoid waiting periods or other restrictions if you have group coverage through your employer or another source — although your employer’s plan may not cover all types of medical care or prescription drugs.
The Affordable Care Act (ACA) changed the landscape of health insurance in the United States. Prior to its implementation, most people with pre-existing conditions were unable to obtain coverage. Now, thanks to the ACA’s individual mandate, insurers cannot deny coverage or charge higher premiums based on your health.
Even so, there are still plenty of reasons why you might want or need individual health insurance:
You’re a student who wants supplemental coverage while you’re on your parents’ plan.
You want a lower monthly premium but higher annual deductible than what you’d get through an employer plan.
You live in a state that hasn’t expanded Medicaid and don’t qualify for subsidies through the ACA marketplace because your income is too high (this is especially true for single adults).
You have a pre-existing condition that makes it difficult to qualify for other types of coverage.
The Affordable Care Act (AKA Obamacare) requires all Americans to have health insurance. While the law specifies that employers with more than 50 employees must provide their workers with affordable health insurance options, there are no similar requirements for individual households.
That means that if you’re self-employed or work for a company with fewer than 50 employees, you’re required to secure your own individual health insurance policy.
But don’t worry! This doesn’t mean you have to purchase a policy on your own. There are various ways to obtain individual health insurance coverage through group plans offered by associations and other groups you belong to — even if it’s just one person in that group who wants coverage.
