How to Decide Whether to Buy an Individual or an Employer's Health Insurance

Compare your employer's health insurance with individual health plans

Obtaining health insurance usually involves one of two primary methods: participating in your employer's health insurance program or purchasing it on your own. Because employer plans operate under group rates and offer coverage to a broad network of people, they can vary dramatically from individual plans, which are tailored to a particular consumer. Although each insurance option provides quality health insurance for you and your family, you must consider several items when deciding which plan best suits your needs and budget.

Instructions

1. Contact your company's human resources department for details on available health insurance options. The details should include information on benefits and services, deductibles, co-pays and co-insurance, monthly premiums and policies on preexisting conditions.

2. Visit websites of major health insurance carriers in your state and online health insurance companies to obtain price quotes and coverage options for individual health insurance plans.

3. Compare benefits and services between employer-offered plans and individual plans. Employer plans are often very comprehensive, because they are meant to cover a wide range of people with a wide range of lifestyles and health issues. Although comprehensive coverage is useful for many employees, these blanket plans do not offer much customization. Individual plans can range from limited to comprehensive, and they allow for more customization by the individual, who can often pick and choose his preferred coverage options.

4. Compare price differences between your employer's health care options and individual health plans, as prices will vary depending on each plan's coverage options and how much your employer may subsidize health insurance.

Tips & Warnings

• For personalized guidance on which individual health insurance plan may be right for you, consider contacting a local licensed health insurance broker. A broker can walk you through available plans and options as well as make recommendations based on your health care needs and budget.

References

• Health Insurance Resource Center: Group Health Insurance
• Health Insurance Resource Center: Individual Health Insurance
• Kaiser Family Foundation: Health Insurance Costs

Resources

• Health Insurance
• eHealth Insurance