Individual vs Family vs Group Health Insurance Plans

With the ever-growing cost of healthcare in the USA, finding the right health insurance plan that fits into your budget isn’t always easy. Knowing what you need to accomplish with a health insurance plan and just who and what needs to be covered by it will help you to decide what type works best for you and your family.

Individual Health Insurance Plans

Okay, let’s start with the individual health insurance plan and go from there. First, an individual health insurance plan is pretty much just what it says; it’s a health plan for one person. For those who only have themselves to worry about, this is going to be your best option in the cost department. Individual plans can still vary a great deal in affordability, depending on what type of coverage you opt for.

A more traditional health insurance plan (called an indemnity plan) covers visits to whatever doctor you want to see and will cover whatever those procedures are that the said doctor prescribes for you. The cost can vary as to how much of a deductible you have and your out-of-pocket limit. Overall though, this is the more expensive type of individual health insurance plans out there but offers you the most freedom of choice.

Individual managed plans, like HMO’s, are more cost effective but you do give up some of the freedoms that you have in the indemnity plan. You will need to see doctors on your approved list and any specialists that you need to see will need to be by referral. If your health care is primarily yearly check-ups and the occasional antibiotics, this is a plan that could work for you. It will cover health emergencies, there are just more hoops you have to jump through.

Both of these health insurance plans can include prescription and dental coverage at an additional cost.

Family Health Insurance Plans

Like the name suggests, family health insurance plans are for families and since these health plans are covering more than one person, the cost is going to be higher. As a matter of fact, the bigger the family, the bigger the price tag. Also, the ages, gender, and health choices, like smoking, from each family member will play a big part in just how much a policy like this will cost you. There are indemnity plans that are for families and they offer the same freedoms as the individual plans. This can be a real bonus when dealing with multiple people.

Family health insurance plans also come in the managed health care package and work pretty much the same way as the individual ones. The cost will be higher than the individual plan, but not as high as the family indemnity plan.

Group Insurance Plans

Many companies now offer their employees group insurance coverage, footing the bill for some or most of the premium. Since many of these companies now offer both types of health insurance coverage, how much you end up paying out-of-pocket will depend on which type of policy you choose.