If you are self-employed or the place you currently work at does not offer health insurance coverage, you will need to look at your options for individual health insurance. Although plans purchased through employers are often less expensive than individual plans, there are ways to cut costs on the individual plans as well. Your insurance agency can help you understand your options and pick the one that is most cost-effective.
Individual health insurance plans come in a variety of forms. The basic type of health coverage is known as an indemnity plan. This covers medical risk in such a way that you are able to visit nearly any provider for service. An indemnity plan is useful if you are not sure whether you might be moving to a new state or traveling extensively in the near future. In many cases, indemnity plans will even cover you in foreign countries. You may also want to consider this type of coverage if the physician or clinic that you trust the most is not part of a provider network in a managed care plan.
Managed care plans, also known as preferred provider coverage, place restrictions on the providers that you can see without paying out-of-pocket in full. This type of plan can be a great way to save on your insurance premiums, as long as you are satisfied with the providers within the specified network. You may not have coverage if you travel depending upon whether the network includes a facility near your travel destination.
If you are interested in customizing your insurance plan, you might want to opt for menu-style individual health insurance. This will allow you to get rid of certain components that do not apply to you. You might also be able to add options that better reflect your particular needs.
It is important to weigh your options carefully when choosing a health insurance plan. Remember, lower premiums usually mean higher deductibles. You should keep in mind the extent to which you expect to use medical services and choose a plan accordingly.
Learn more about individual health insurance here.