Families may be insured under individual health insurance plans.
Health insurance provides coverage for medical expenses. Individual health insurance differs from group coverage because people who purchase individual plans must meet underwriting criteria, while group health participants do not. Insurance companies selling individual policies ask questions regarding medical history and current health. They charge higher rates due to the increased risk involved in insuring individuals over groups. Sometimes insurers deny coverage to individuals considered too much of a risk.
Self-Employed
Self-employed people are eligible to purchase individual health insurance plans. Unlike individuals employed by private institutions, people who are self-employed do not have the opportunity to benefit from company-sponsored health and medical plans. They're responsible for finding and paying for their own plans.
One of the major benefits for self-employed people who purchase individual insurance is their premiums are a tax-deductible business expense. They have the opportunity to recover some of the expenses related to buying and maintaining individual health insurance.
Unemployed
According to the Department of Labor, individuals who participated in a group health insurance plan and lose their benefits because of termination or layoff are protected under the Health Insurance Portability and Accountability Act (HIPAA). The act gives individuals the opportunity to purchase individual coverage if group coverage is not available.
In addition, unemployed individuals who need insurance to protect themselves, a spouse or small children may also purchase individual plans. Many individual health plans are available to those without jobs who need insurance for preventative care, emergency situations or long-term illness.
Pre-existing Conditions
A pre-existing condition is an illness or other health issue diagnosed or treated prior to the issuance of a health insurance policy. Most health insurers exclude pre-existing conditions from coverage. For example, an individual with diabetes or cancer who has been diagnosed or treated for the condition prior to obtaining insurance will not receive coverage for that condition under the policy. In many cases, the company will exclude the condition for at least twelve months after the policy has been in force. After this initial period, the condition is usually covered.
Individuals with pre-existing conditions may be eligible for state or federally-issued high risk individual health plans. The Federal "Pre-existing Condition Insurance Plan" (PCIP) is available to people who have been denied health insurance by private insurance companies.
Insurance Carriers
Insurance carriers who provide group health benefits also provide individual health insurance plans. Insurance carriers such as Cigna, Blue Cross Blue Shield, United Health Care and Anthem provide a variety of health insurance plans for individuals.
Individuals can purchase insurance to cover the cost of prescription drugs. They also have the option to pay into a health savings accounts over time to cover the high cost of medical expenses or insurance plans with high deductibles. Other plans, such as Preferred Provider (PPO) and Health Maintenance Organization (HMO) insurance are organized networks of hospitals and health care providers who offer their services at a discount in exchange for the plan participant paying the health insurance premium. These types of plans cover health-care costs associated with doctor's visits, emergency care and hospital stays, as well as inpatient and outpatient surgery.
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