Private Health Insurance – Buying Private Health Insurance
For many of us, the day comes in which looking at different health insurance options becomes a necessity. This has become increasingly true in the face of an economic recession. More and more individuals are losing their group insurance coverage and are being forced to look at private health insurance. Private health insurance in the United States is pretty much the only alternative for the majority of Americans. If you are not lucky enough to have your company provide health care in a benefit package, then you are stuck looking for other options.
As the debate continues regarding a public health insurance option in the United States, private health insurance remains one of the only true ways to compete with group coverage. Unless you are living below the poverty level, public insurance is currently not an option (not really public insurance, but there are public programs that assist in finding health insurance for needy families).
What's So Bad About Private Health Insurance?
So what is so bad about private health insurance? The primary reason that private health insurance gets a bad rap is that it is often much more expensive than the group coverage offered through your employment. Individuals that have been forced out of their current group coverage often find the transition into private health care insurance to be difficult.
Some of the additional costs of private health insurance coverage:
Higher Premiums – The higher premium is one of the most common distinctions between private healthcare insurance and group healthcare insurance. For the most part, you will pay more per month in your premiums than a group plan. And often when this isn’t the case, higher deductibles or out of pocket maximums make up the difference.
Higher Deductible – The next big hit that individuals take when buying private health insurance is that they often face higher deductibles. This is often because the only way to lower the monthly premium on their account is for them to agree to pay more per claim.
Higher Out-Of-Pocket Maximum – Private health insurance plans often have a higher out-of-pocket maximum than group policies. So in those cases where the insurance become a big help and protects against financial ruin, you are capped at how much the insurance company is willing to pay.
Higher Maternity Costs – If you are fortunate enough to qualify for maternity coverage on your private medical health insurance, you will be faced with much higher out of pocket expenses for the birth of your child. The standard deductible on your policy is often separate from the maternity deductible.
The cost is only a small portion of the disadvantages of a private health insurance plan. The next big issue when you go from a group plan to a private plan is that the coverage drops drastically. Do not expect the same sort of perks your group plan had. Often if you even have the option for dental or chiropractic care, the cost to add these to the policy are so astronomical to not make it worth it. These are often covered by separate specialized insurance policies.
Who Can Get Private Health Insurance Coverage?
Another tricky part of private health care insurance in America is that you are not guaranteed coverage by the insurance company. In a group plan under your employer, they are forced to give everyone in the group the same premium. By law they are also not allowed to discriminate who gets coverage by the plan. If you are eligible for the company’s insurance plan, you are eligible for the coverage.
Unfortunately private health insurance does not share this same advantage. Assuming that private healthcare insurance is your only option, you will not necessarily qualify. This type of healthcare requires medical histories, exams, health charts, and other invasive qualifications. The type of person that the insurance company is looking to insure is the type of individual that will not file claims.
Even if you are fortunate to qualify for private health insurance, you will not necessarily get coverage for what you really need. These types of policies are notoriously strict about pre-existing conditions. You will often have to wait a long period before coverage will begin, if they decide to provide it at all.
Is There An Advantage To Private Health Care Insurance?
Despite all of the negative aspects of private health insurance, the option for coverage is of vital importance for most people. The astronomical cost of health care when no insurance is available can be completely debilitating. Any form of health insurance is better than no health insurance. The trick is trying to find a good health insurance plan for your needs.
There are also circumstances in which a private health insurance plan can be cheaper on the whole than a group policy. Extraneous circumstances in small business can lead to the group plan having steep premiums. In circumstances such as this, private health insurance can be a real financial benefit.
Private health insurance is still a major concern for the United States. As the cost of healthcare continues to increase, insurance companies will need to come together to find a solution that will help them cover their costs, provide for their customers, and sustain and maintain their business. Private health insurance will continue to play an important role in the lives of Americans well into the future.
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