How to Choose Individual Health Insurance Plans

Individual health insurance plans help self-employed, unemployed and under-insured customers get the medical coverage they need to protect against the unexpected.  Most insurance companies offer an array of options designed to fit any budget.  Learn how to choose individual health insurance plans to find the coverage that works best for you.

1. HMO or PPO?  There are two major types of health insurance plans:  Health Management Organizations (HMO) and Preferred Provider Organizations (PPO).  The HMO will most often be the low-cost option, as subscribers to this type of insurance plan choose a primary doctor and commit to seeing that health professional for all of their medical needs.  PPOs grant you more flexibility, offering a wider network of health care providers to choose from and allowing you to see a specialist or out-of-network doctor at your leisure.


2. Understand deductibles.  A deductible is the amount of money you will need to pay out-of-pocket before the health insurance company will begin paying for your medical expenses.  When choosing an individual health plan always find out if there is a deductible, as some deductibles can cost as much as $5000 dollars.  While having a relatively high deductible will lower the cost of your monthly insurance premium, make sure that when you need to use your medical benefits the deductible is not out of your financial reach.


3. Understand riders.  If you have a pre-existing medical condition it is important that you understand how riders operate.  A rider is a provision written into your health insurance contract which states that the company will extend coverage for existing ailments only after an exclusion period, which can be anywhere from 2 months to a full year.  This means that you will need to pay for your own medical treatments for that particular issue until the waiting period is up.  To avoid the automatic inclusion of this type of rider you should speak with an authorized representative to make special arrangements that will be most beneficial to you.