Private Health Insurance Information

Private health insurance policies cover millions of individuals and families across the United States each year. These plans are individually owned and bought directly from insurance companies. Flexible coverage options are one of several benefits that come with private health plans. However, individuals with less than good health may find it expensive or difficult to obtain private health insurance.

Types

• People who are looking for private health insurance have two main plans to choose from: Indemnity and managed care. Indemnity health plans are fee-for-service coverages that reimburse their members after they pay for their medical bills. These plans provide maximum flexibility and control to their members by allowing them to seek health care services from physicians of their choosing. Managed health care plans, on the other hand, are cost-effective health coverages that limit their members' medical options by paying for services performed by doctors of their choice. There are three types of managed health care plans available: Preferred Provider Organization, Health Maintenance Organization and Point of Service.

Benefits

• There are several benefits to purchasing private health insurance plans. Individuals are able to tailor their plans to benefit themselves and their families. They can add or delete policy options and can also increase their out of pocket expenses such as deductibles to lower their premium amounts. Private health insurance plans are also portable which means coverages stay in effect after plan owners move to different areas and/or change employers.

Facts

• Over 194 million people were covered under private health insurance plans in 2009, according to the U. S. Census Bureau. However that was down from 201 million in 2008. In 2010, managed health care plans covered almost 136 million people. The average cost for private health insurance plans in 2007 was $218 per month.

Warning

• Private health plans have drawbacks as well. Policy owners are responsible for paying their entire premium amounts. This isn't the case with employer-sponsored plans where employees pay less than 30 percent of their premiums. Also, insurers are not required to grant private health insurance policies to every applicant. Insurance companies can deny coverage if the applicants' health are considered high risks. If applicants are accepted for coverage with substandard health, they would be charged higher premiums.