About Private Health Insurance Options
- According to the U.S. Census Bureau, 201 million people were covered under a private health plan in 2008. That's a decrease from 202 million in 2007.
- Managed health care plans are the most affordable among private insurance. The insured is encouraged to choose a primary care physician (PCP) from a network of contracted doctors who provide medical services at a contracted rate. There are three types of managed health care plans: Health Maintenance Organization (HMO), Point of Service (POS) and Preferred Provider Organization (PPO).
- Indemnity health plans give the insured flexibility and control over his health decisions. This insurance doesn't require a PCP or provide a network of doctors. Instead, the insured can see a doctor of his choice, regardless of location. However, indemnity health plans are more expensive than managed health care plans.
- People may consider getting a private health plan because of the freedom it provides from other types of health plans. An insured can keep his policy if he moves and/or changes jobs, unlike an employer-sponsored health plan. Also, there are no income or age guidelines that are present in Medicaid and Medicare programs.
- Depending on health status, an applicant may run into problems getting covered under a private health plan. If his health isn't in good condition, the applicant pays higher premiums. If his health is in poor condition, he may be denied coverage altogether.