What are the Four Kinds of Individual Health Insurance Plans

Are you a recent graduate, newlywed, early retiree or between jobs? Not satisfied with your current individual health insurance plan? Then you will find yourself shopping around for a quality, affordable individual health insurance plan.

Most people, until recently, get their health insurance from their employer. But in today’s declining economic environment, many companies are eliminating or drastically reducing coverage by company-sponsored health insurance. Increasing numbers of people are seeking affordable private health insurance plans designed for individuals.

Individual health insurance coverage can actually be affordable for most people. First decide exactly what coverage you need, and then go comparison shopping. You need to find coverage that is a good financial fit for your budget, and comparison shopping is the only way to discover it.

Four of the most common individual health plans are theHMO, PPO, HSA, and FFS. Health Maintenance Organizations (HMO) can be the most affordable of all the plans. Most HMO networks include thousands of professional health care providers.Preferred Provider Organizations (PPO) are also very affordable and are also more flexible than HMOs. You can see any health care provider you want, making these plans more convenient.Health Savings Accounts (HSA) allow you to save future health care dollars via tax-free contributions to a savings account. After the deductible is met on the accompanying high-deductible health plan, use your HSA account to cover remaining costs. Fee For Service (FFS) plans are the traditional health plans we are all used to. You pay upfront to get healthcare, and then you are reimbursed for part of the cost.

Getting your own health insurance prevents you from being dependent upon your employer and thereby keeps you from losing your health insurance if you leave your job. Individual health insurance is meant for single individuals, either self-employed or employed by a small company offering limited health insurance options.Review all the options and costs for the plans you are considering. Comparison shopping for health plans takes some time, but it is time well spent.

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