Types of Individual Health Insurance Policies

Individual health insurance policies are generally more expensive than group insurance plans. If you are self employed or if you are an entrepreneur with health insurance coverage, you need to know the individual health policies that can suit your needs.

Indemnity Plan

One of the most common individual health insurance policies available in the market is the indemnity plan. It is also known as a Fee-for-Service plan. Under this policy, the insurance provider will cover the medical services given to you by your doctor, hospital or any other medical care service provider. However, your insurer will set a cap or maximum amount that can be covered by your plan.

Among the main benefits of this type of individual health coverage is flexibility. Under an indemnity plan, you will be given the freedom to choose the doctor that will provide you with health care services. Unfortunately, indemnity health insurance plans can be very expensive. More often than not, you are required to pay medical fees first, and then your insurance provider will reimburse your expense.

Health Maintenance Organizations (HMO)

If you are the kind of person who thinks that flexibility is not as important as the cost of your health insurance, you should consider HMO plans. These usually have more affordable monthly premiums compared to other plans. Furthermore, this type of policy does not require you to pay your medical expenses upfront and wait for reimbursements.

The only disadvantage of this type of policy is that policyholders will have a very limited choice of hospitals and doctors. Often, beneficiaries have to be content with the services of the doctor assigned to them. Many HMOs also require co-payments for each visit to the doctor and for medical procedures.

Preferred Provider Organizations (PPO)

This is another one of the most popular individual health insurance policies available. It is basically a hybrid of the HMO and indemnity plans. Like an HMO, you will not have complete flexibility of choice with regard to doctors and hospitals. Your choice will be limited only to the institutions, organizations or individuals that are accredited by the insurance provider. However, the list of preferred provider organizations is typically more extensive than an ordinary HMO list. In case you want to get the services of a doctor or hospital not listed in your PPO policy, you can still enjoy a portion of the coverage provided under your PPO policy.

Short-Term Plan

This type of policy only provides coverage for a specific time frame. This is ideal for people who want to continue to have health insurance coverage in between jobs.

Long-Term Care

Long term care is most suitable for the elderly and individuals who are suffering from long-term illnesses. People who are unable to take care of themselves can also be covered under this policy. Some of the services that are typically covered by this type of plan include residential facilities, prepared meals and health care.