What Is an Individual Health Insurance Plan?
There are two types of individual health insurance plans available in the United States. One plan provides a cost-effective way to receive quality care, while the other gives the insured more freedom to choose their health services.
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Individual Health Insurance Plan
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An individual health insurance plan is a policy that is bought from an insurer by a person.
Managed Health Care
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There are three types of managed health care plans: Health Maintenance Organization, Point of Service and Preferred Provider Organization. Each plan provides its members with a network of contracted doctors who will perform medical services at a discounted rate.
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Indemnity Health
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Referred to as the 'traditional' health plan, Indemnity health plans reimburses the insured after they pay for their medical costs. This expensive plan allows the insured to seek medical care from a doctor of their choice regardless of location or cost.
Benefits
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Individual health plans can be tailored to the applicant's budget and needs. Also, the plan can be kept in force even if the insured moves or change jobs.
Considerations
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Insurers determine the premium amounts of an individual health insurance policy based on the information provided by the applicant such as their age, gender, occupation and health history.
Misconceptions
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Unlike group health insurance, applicants for individual health insurance can be denied a policy if the insurer determines the risk of providing coverage is too great.
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