The individual health insurance provides protection and peace of mind to millions of Americans who do not have employer-sponsored health coverage. The average annual cost of individually purchased heath insurance is approximately $2,000 in America and premiums increase with age. But the individual coverage is more affordable than is often assumed.
There are two kinds of individual health insurance. The first one is called voluntary individual health coverage that most states recognize and allow insurers to underwrite applicants for individual medical expense insurance. The second one is in the vice condition. A number of insurance companies supply a choice of coverage and premium that can match the unique needs of everyone with the appropriate set of health insurance. The most famous companies include Aetna, Blue Shield, Group Health Incorporated, Health Net, Kaiser Permanente and PacifiCare, Regence BlueShield, etc. But not all companies are available in every state. The coverage varies depending on the state where you live.
In a few states such as Alaska and Colorado, medical underwriting is illegal. All policies must be sold on a guaranteed issue basis. In these states, it is also prohibited that insurers charge premiums based on health status. All the insurers in these states must use a single community rate for all residents. In other states such as Indiana, Nevada and Oregon, only certain residents who have a continuous coverage history could purchase individual health insurance on a guaranteed issue basis. The Blue Cross &Blue Shield is one of them. Many states establish public programs offering coverage to some uninsurable individuals turned down by private insurers.
Then how to choose a proper individual health insurance plan? Let us assume you are a 27 non-smoking male who is considering an individual health insurance in California There are many options for individual health insurance in California: Indemnity Policies which provide traditional fee-for-service insurance; PPO; HMO; Single Employer Self-Insured Plans and MEWA. In additional, some special policies are also available such as MRMIP and HFP, etc.
There are four major things to consider when choosing individual heath insurance plan: affordability (premium, co-payment and annual deductible), the services level, care quality and proximity. Finally, you could go to a certified insurance agent or online to get a health insurance quote. Your personal information, such as gender, age, tobacco usage in last 12 months and your medical history (chronicle disease, family history) will be taken into consideration during the quote process. After getting the quote, you might want to study the price and the coverage carefully to choose the one fits you best. Then you can fill out form and file an application. The insurance company would review the application and determine if the applicant is eligible for the policy. Normally, in California, the insurance company will not cover preexisting conditions for up to one year after the effective date of the policy. However, you are eligible for prior creditable coverage over any waiting period for preexisting conditions you have been under an individual or group insurance previously without incontinent gap of 62 days coverage or more.