Why Is It So Hard to Buy Individual Health Insurance Plans?

For those of you who have always been insured through an employer’s group plan, consider yourselves lucky.  The hardest part about selecting a group plan is deciding which plan has all your doctors.  But choosing individual health insurance plans can be a lot more complicated. The reason for this is that you no longer have an employer’s buying power behind you.  Also, you no longer have their contribution to your monthly premiums.  Take those two things away and you may be surprised at how much more expensive these plans can be.

Because the average self-employed or underemployed person has less money to spend on healthcare, not more, it can be very frustrating to find affordable individual health insurance on your own.  Sure, the plans might look great when you first read the description on their website, but you later learn that the plan is more expensive for you because of your prior health conditions or lifestyle.  Then, on top of the higher price, you learn that the plan covers far less than your employer’s plan once did.  Most of the individual health insurance plans on the market today are less comprehensive than group plans because insurance companies are trying to keep costs down for consumers.

What can you expect when shopping for individual health insurance plans?

Health Savings Accounts (HSAs) are a popular option for individuals and families because they offer a lower monthly premium, but they also allow you to save money in an interest-bearing tax-deferred savings account.  This way, you can use the funds to pay for the high deductibles.  Members can choose between annual deductibles that range from $1,500 to $10,000, after which the full benefits of the plan will kick in.  If you choose one of these plans, look for one with a diminishing deductible.  Some HSAs from United Healthcare’s Golden Rule will reduce the annual deductible by up to $1,000 for every year that your medical expenses don’t meet the deductible.

PPO Plans – Much like the plans offered by your employer, PPO plans (Preferred Provider Organizations) have more predictable fee schedules for common medical expenses.  In exchange for more comprehensive coverage, the monthly premiums are usually a lot higher for these individual health insurance plans.

Rather than attempting to navigate all the individual health insurance plans, it makes sense to work with an experienced health insurance broker.  Michael Horvat is a health insurance expert and broker with HealthQuotes.com in Colorado Springs, CO.  If you are searching for Colorado health insurance plans or quotes, please give Michael a call anytime at 800-345-0789.