Privacy Policy
Private Health Insurance - Introduction
Private health insurance is a coverage most of us have
never had to worry about. The fact is the majority of
people get their health insurance coverage as an
employee for a company that pays for it. However, for a
growing population, private health insurance is a reality.
And it’s not an inexpensive one, either. Whether it’s
leaving a career prior to the age Medicare kicks in,
being a college student away from home and too old to
be on the parents’ policy anymore, or being an
entrepreneur or young adult working freelance, private
health insurance is the only coverage one get can for
health care aside from free clinics.
For anyone who has had to use such a policy, the first
thing that comes to mind is either the very limited
coverage or the very high monthly premiums that are involved. These plans are not designed to be
consumer friendly. They are a barebones insurance policy that frequently includes high co-payments,
very high deductibles, and very little in the way of everyday healthcare benefits. These plans are
primarily intended to be disaster coverage for once-in-a-blue-moon type injuries or sicknesses.
So is it impossible to find a decent private health insurance plan? No, but it does take a lot of research.
You need to know what exactly you need for your age and health in terms of coverage. You then need
to determine what you are willing to pay for private coverage. Finally, you need to shop around and
compare rates. Don’t go with the first package offered to you. Frequently, comparison-shopping can
reduce the first quote by at least 20 percent.
How it Works
There is some truth to the rumors and stories about private health insurance policies being very picky
about whom they cover. Normal health insurance through a company is pretty straightforward. The
company pays an insurance provider to cover all of its employees, regardless of health condition,
gender, history, or issues. However, as an individual plan, insurance companies only deal with you
directly. And they can decide whether to accept you, on what terms, or reject you outright. Typical
factors that weigh decisions include age, use of artificial negative products such as alcohol or
cigarettes, gender, and weight. Most applications also require the candidate to be reviewed in a
medical exam and blood test.
The issue of preexisting conditions and rejection on their basis is a common occurrence. Insurance
companies are in the business to make a profit. Those with a proven track record of medical conditions
are given loss in that the associated medical costs will surely outweigh any premiums earned. As a
result, insurance companies avoid such individual applicants altogether.
If a private health insurance provider does accept someone with a preexisting condition, it is usually at a very high cost to the
individual. While a normal applicant could see a premium of $150 to $200 a month, one with a preexisting condition could be paying as
much as $600 to $850 a month for the same, barebones coverage.
Further, insurance companies can change rates as you renew your policy. If they find a new condition or a detail that was missed
earlier, generally that will be reflected in an increased premium down the road.
All content Copyright 2009, 2010 - PrivateHealthInsurance.us
Private Health Insurance - Introduction
Private health insurance is a coverage most of us have
never had to worry about. The fact is the majority of
people get their health insurance coverage as an
employee for a company that pays for it. However, for a
growing population, private health insurance is a reality.
And it’s not an inexpensive one, either. Whether it’s
leaving a career prior to the age Medicare kicks in,
being a college student away from home and too old to
be on the parents’ policy anymore, or being an
entrepreneur or young adult working freelance, private
health insurance is the only coverage one get can for
health care aside from free clinics.
For anyone who has had to use such a policy, the first
thing that comes to mind is either the very limited
coverage or the very high monthly premiums that are involved. These plans are not designed to be
consumer friendly. They are a barebones insurance policy that frequently includes high co-payments,
very high deductibles, and very little in the way of everyday healthcare benefits. These plans are
primarily intended to be disaster coverage for once-in-a-blue-moon type injuries or sicknesses.
So is it impossible to find a decent private health insurance plan? No, but it does take a lot of research.
You need to know what exactly you need for your age and health in terms of coverage. You then need
to determine what you are willing to pay for private coverage. Finally, you need to shop around and
compare rates. Don’t go with the first package offered to you. Frequently, comparison-shopping can
reduce the first quote by at least 20 percent.
How it Works
There is some truth to the rumors and stories about private health insurance policies being very picky
about whom they cover. Normal health insurance through a company is pretty straightforward. The
company pays an insurance provider to cover all of its employees, regardless of health condition,
gender, history, or issues. However, as an individual plan, insurance companies only deal with you
directly. And they can decide whether to accept you, on what terms, or reject you outright. Typical
factors that weigh decisions include age, use of artificial negative products such as alcohol or
cigarettes, gender, and weight. Most applications also require the candidate to be reviewed in a
medical exam and blood test.
The issue of preexisting conditions and rejection on their basis is a common occurrence. Insurance
companies are in the business to make a profit. Those with a proven track record of medical conditions
are given loss in that the associated medical costs will surely outweigh any premiums earned. As a
result, insurance companies avoid such individual applicants altogether.
If a private health insurance provider does accept someone with a preexisting condition, it is usually at a very high cost to the
individual. While a normal applicant could see a premium of $150 to $200 a month, one with a preexisting condition could be paying as
much as $600 to $850 a month for the same, barebones coverage.
Further, insurance companies can change rates as you renew your policy. If they find a new condition or a detail that was missed
earlier, generally that will be reflected in an increased premium down the road.