Individual Health Policies vs Group Plans
Many Americans get their health insurance through their employer but millions of us are on our own because we are self employed or our employer does not offer a health plan. Those of us in this category have to go to an agent to purchase an individual health plan for ourselves and our family.
It is difficult to compare employer provided health plans with individual plans for a variety of reasons. Those of us who end up changing or losing jobs soon realize how expensive this coverage can be when we are stuck paying for COBRA. One of the primary reasons for the high cost of group plans is that these plans are guaranteed issue in most states. That means no one can be denied coverage and the insurance company is accepting more risk of having to pay expensive claims.
Individual health insurance is often less expensive and a better value than group insurance. You can choose a deductible that is comfortable and affordable so that you limit your exposure to financial risk should a devastating illness or injury occur. If you are young and healthy, your premium will be low so it is easier to choose a lower deductible. Older individuals will pay a higher premium but this demographic is usually more established financially and able to choose a higher deductible because they have the financial resources to absorb the potential risk.
There are many advantages to owning your own health plan. Once you are covered, the insurance carrier can not cancel your plan if you become sick. In addition, the plan is portable because you own it, not your employer. The best time to get your own health plan is when you are in good health because you will be protected against any future illness or health issue than can occur.
A recent plan that has become a very attractive option is the health savings account. This plan will always have a high deductible of at least $1,150 for an individual and $2,300 for a family but it limits your exposure and gives you the option of taking a tax write off for medical expenses incurred. You can also write off money saved in your health savings account to pay for future medical expenses. This plan is growing rapidly in popularity and it is a great choice for individuals and families who are looking for a cost effective way to limit their health care costs.
At www.mrinsuranceofmaryland.com you will find a full service health insurance brokerage ready and willing to help you navigate the health care system and make the best choice. As your broker we work with all of the major carriers in Maryland and Virginia so our loyalty is to you. Please feel free to email us at info@mrinsuranceofmaryland.com or call us at 866-654-4844 for a free quote.
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