What is Private Medical Insurance?

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Private medical or health insurance is typically purchased by individuals who are either starting their own business, working for a small business or are currently unemployed. Some types of private medical insurance can be supplemental to fill in the gaps that primary insurance doesn't cover. Private medical insurance can be purchased by anyone, but it requires a lot of work to find the best coverage options available.

Needs

Individuals who are looking for private medical insurance will need to decide what type of plan is needed. This can include deciding to include a prescription drug option as well as dental and vision options. Each of these options can affect the premium that is paid for the insurance plan.

Costs

Any type of private medical insurance is going to be expensive to purchase. Some states regulate health insurance, and this can result in various types of pricing for policies depending on the state in which an applicant lives. The premium that is paid for private medical insurance is reviewed each year and may not stay the same from year to year.

Pre-Existing Conditions

When an individual applies for private medical insurance one item that is used to determine eligibility and the cost of the premium is whether the individual has a pre-existing condition. This can include heart disease as well as diabetes. Individuals with a pre-existing condition may be denied coverage. If an individual lives in states such as New York and Massachusetts, he cannot be denied coverage because of a pre-existing condition.

Gap Insurance

Individuals who need insurance for a short period of time, such as college graduates, can purchase what is called “gap insurance.” This type of insurance may be offered by an alumni association to new graduates. This allows recent graduates to maintain health insurance for a short period of time after graduation.

Age

Premiums for private medical insurance can increase as individuals age. This is because the costs for health coverage increase as people reach the age of 50. Individuals that are in their 20s should be able to find private medical insurance at a reasonable price.

COBRA

If an individual has the option to apply for COBRA coverage offered by a former employer, they should. This will allow them to continue on their former employer's group policy until a private insurance plan is found.

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