How to Compare Prices on Individual Health Insurance

The group health insurance offered by most employers is a major benefit of working for a company. Group health insurance is almost always a better deal than anything you can purchase individually. However, there are times when an individual plan is your only option for obtaining health coverage. Because individual plans are more expensive than group plans offered through companies, it's vital that you compare the prices on individual health insurance plans before making a decision.

Instructions

• 1

  Ensure that individual health insurance is your best option before beginning to compare prices. Ask about health coverage through your employer, if you're working at a regular job; if you're self-employed, or unemployed, this will not be an option. Always inquire about other options before you begin comparing prices on expensive individual healthcare plans.

• 2

  Choose between an indemnity plan and a managed care plan. Note that indemnity plans will generally be more expensive, but provide you the freedom to visit any doctor or hospital that you want; co-payments that you must pay out of pocket are calculated as a percentage. Managed care plans usually have fixed co-pay amounts and lower premiums, but restrict you to visiting doctors and hospitals within a specific network.

• 3

  Consider the services that you and your household will use most often. For a single, healthy individual, it may be beneficial to consider plans that place an emphasis on accidental injury coverage, but don't cover routine doctor visits. A family in which someone has a chronic condition, that requires them to see a specialist regularly, will want to focus their efforts on pricing that will minimize these costs.

• 4

  Research "group of one" insurance policies if you're a sole proprietor who has been in business at least 30 days. Note that in some states, these policies will allow you to purchase individual health insurance at a group rate. Remember that group rates are lower than individual rates, so if such a plan is available in your state, you should compare these prices to standard individual healthcare plans.

• 5

  Select a number of health insurance plans that have the features you want for a price you can afford. Determine criteria by which you can compare their costs objectively. Remember that just because a plan has the lowest premium, that doesn't necessarily make it the best value for your situation. You must also consider what the insurance covers, and how much you might end up paying out of pocket with any particular plan. Choose the plan that's the best value for its cost, in your situation.