Private Health Insurance for Individuals and Families

Individuals and families that are usually covered by regular health insurance may encounter times in which they are not covered, for example in times when the covered person (through which the rest of the family is also covered) is between jobs. And while such a situation is not ideal, it may be tempting to do nothing and wait for coverage to resume. However, being uncovered is also risky, for obvious reasons. Fortunately, private health insurance can cover the gaps for major medical emergencies.

If you’re in good health, private coverage can offer peace of mind as it offers benefits like prescription drug coverage, hospitalization, emergency room visits, doctor visits, surgical procedures, and lab work. You also have the option to extend your coverage by purchasing a plan with a higher deductible or coinsurance. Here are two ways that private health insurance could benefit you and your family in the long run.

Coverage Gap Solutions

With private health insurance, if you have a gap in your coverage after losing your job or leaving school, you can get temporary coverage to bridge the gaps until other plans kick in. If you’re not eligible for Medicare, private health insurance is the only option that allows you to buy an individual insurance plan while preserving your eligibility to buy a future Medicare Advantage plan. Private health insurance offers protection when:

·        You’re between jobs and don’t have any coverage from your employer.

·        You’re between jobs but are being treated by a physician for ongoing medical conditions.

·        You’ve graduated from college but are on parental leave from work with no employer-sponsored benefits.

Affordable Premiums Mean Lower Out-of-Pocket Expenses

Private healthcare insurance has lower premiums because it provides coverage only while the policy is in force. With Private policies, you pay a fixed premium upfront, so your out-of-pocket expenses are also fixed. Since the policy is shorter than a traditional plan, the insurance company can offer lower premiums without having to offset that cost with higher copays or coinsurance

This means you’ll have lower out-of-pocket expenses if you need to use your benefits since you’ll be paying a smaller percentage of them yourself. For example, let’s say you purchase a 30-day policy. You would pay an upfront premium equal to 30 days’ worth of coverage (or $150) plus the daily rate for any care needed during those 30 days ($2 per day).

The total cost for this example would be $362 ($150 +$2*30). If you were on an annual policy and incurred costs equal to one month’s deductible amount during that period ($2,000), then you would owe $500 after receiving reimbursement from your insurer ($2,000 minus $1,500)