Individual Health Insurance

Health insurance can be expensive, and it can be tempting to go without coverage. If you rarely see a doctor, and especially if things are tight financially, it may seem like a good idea to not buy health insurance. You may be telling yourself you can pay for medical expenses as they come up to save on paying insurance premiums. However, this could be financially devastating if you have a severe illness or accident, as healthcare costs can be high and can quickly push you into bankruptcy. This is why it’s essential for everyone to have some form of health insurance and is especially important if you have a family.

When purchasing health insurance, your choices typically fall into one of four categories:

1. Health maintenance organizations (HMOs) offer lower co-payments and cover preventive care. They have a network of doctors and hospitals you must use, or services may not be covered. HMOs, require you to select a primary care physician who coordinates all of your care. In emergency or urgent care situations, you may receive care out of network.
2. Health maintenance organization/point-of-Service (HMO-POS) plans are very similar to HMOs but allow you to go out of network for a limited set of services or services up to a set dollar amount.
3. Preferred provider organizations (PPOs) offer lower co-payments like HMOs but give you more flexibility by allowing you to see a doctor out of network. If you go out of network with a PPO, you will typically have higher out-of-pocket costs in the form of copays, coinsurance, or deductibles.
4. Traditional fee-for-service health insurance plans are usually the most expensive but offer you the most flexibility. These types of plans are not very common as they can be cost-prohibitive.