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Private Health Insurance Options

Guest post by: John Clark

Article Overview: In the United States, studies showed that 62.2% of individuals under the age of 65 were covered by insurance in 2007. The same study showed that 82.8% of the elderly were covered by health insurance in 2007.

Private Health Insurance Options

In the United States, studies showed that 62.2% of individuals under the age of 65 were covered by insurance in 2007. The same study showed that 82.8% of the elderly were covered by health insurance in 2007. Most individuals under the age of 65 receive health care benefits through their employment. This type of insurance is typically private health care insurance. Since the year 2000, the United States has witnessed a rise in unemployment. This corresponded to a decline in the amount of employer provided health care insurance offered. Most people, however, still continue to receive private insurance through their employer. Some individuals may purchase insurance on an individual basis, but the premiums are typically higher than through an employer. Currently, the United States is working on both federal and state levels to reform health insurance for all Americans. This will make the accessibility and affordability of quality private insurance available for all individuals. Many experts argue that consumer protections are needed to protect consumers from unaffordable premium hikes, inadequate benefits and from being discriminated against based upon their status. For example, high risk groups or people with pre-existing conditions may be discriminated against.

Private health care options include the following types of plans:

• Indemnity Health Plans

• Health Maintenance Organizations (HMO)

• Preferred Provider Organizations (PPO)

• High Deductible Health Plans (HDHP)

Indemnity Health Plans

Indemnity health plans allow patients to select any physician, hospital or laboratory they would prefer for service. This allows the patient complete control over their health care. These plans typically cost more. However, most Americans enjoy the flexibility.

Health Maintenance Organizations (HMO)

HMOs offer patients a network of physicians, hospitals and laboratories to select from. Since, only certain physicians are chosen, providers may offer a discount rate.

Preferred Provider Organizations (PPO)

A PPO is a discount provider plan that encourages patients to visit the physicians included in the network. However, this plan also gives patients the option of selecting their own physician for an additional fee. This plan offer patients more flexibility than HMO plans offer.

High Deductible Health Plans

Some individuals select to pay high deductible and low monthly premiums to the insurance company. Individuals with these accounts usually combine these plans with a tax-free savings account to pay for the deductible and out-of-pocket expenses. Patients save money because the money is set aside before taxes are assessed. The savings may only be withdrawn for medical expenses. There are several of these programs available. Each program has various stipulations about how the money can be withdrawn, what happens to the money saved annually and the maximum amount that will be allowed to accrue.

For instance, a Flexible Savings Account (FSA) allows individuals to save money tax free. However, if the savings is not used at the end of the year, the money will not roll over to the next year. On the other hand, a Health Savings Account (HSA) allows individuals to save a maximum of $3,000 for a single person and $5,950 for a family, according to 2009 statistics. Each participant must have a high deductible health insurance plan with a deductible of at least $1,150 for a single person or $2,300 for a family. The HSA allows the money to accrue each year that the amount is not used. Therefore, the person does not lose the money if he or she never meets the deductible in expenses.

This is a cost effective means for acquiring health insurance for people who are not sick as often and do not want to waste money investing in premium costs. However, patients must ensure that they have enough money to cover the high deductible in event of emergency. The money may be deposited monthly or annually. Some employers may match the employee contribution.

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Article Tags: health insurance, health insurance options, insurance, private health insurance
Referred by: http://www.franchisefix.com/



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