Top 5 Individual Health Insurance Questions
1. Why do you need health insurance?
As medical care advances and treatments increase, health care costs
also increase. The purpose of health insurance is to help you pay for
care. It protects you and your family financially in the event of an
unexpected serious illness or injury that could be very expensive. In
addition, you are more likely to get routine and preventive care if
you have health insurance.
You need health insurance because you cannot predict what your
medical bills will be. In some years, your costs may be low. In other
years, you may have very high medical expenses. If you have health
insurance, you will have peace of mind in knowing that you are
protected from most of these costs. You should not wait until you
or a family member becomes seriously ill to try to purchase health
insurance.
We also know that there is a link between having health insurance
and getting better health care. Research shows that people with
health insurance are more likely to have a regular doctor and to get
care when they need it.
2. How do you get health insurance?
Most people get health insurance through their employers or
organizations to which they belong. This is called group insurance.
Some people do not have access to group insurance. They may
choose to purchase their own individual health insurance directly
from an insurance company. Many Americans get health insurance
through government programs that operate at the national, State,
and local levels. Examples include Medicare, Medicaid, and
programs run by the Department of Veterans Affairs and
Department of Defense.
3. What is individual health insurance?
If you are self-employed or your employer does not offer health
insurance, you may not have access to group insurance. You may,
however, be able to purchase individual coverage directly from an
insurance company. When you buy your own health insurance, you
will be responsible for paying the entire premium rather than
sharing the cost with an employer. You should shop around to find
a plan that fits your needs at a price that you are willing to pay.
Most self-employed workers are able to deduct their health
insurance premiums from their Federal taxable income, providing
them with an important tax saving. Most States also offer similar
tax preferences. If you are self-employed and buy individual health
insurance, you should consult a tax advisor to find out if you are
eligible for this deduction.
Insurance plans differ greatly from one company to another and,
within an insurance company, from one plan or product to another.
Some plans have multiple products (options) from which you can
choose; read carefully through the “fine print” to be sure you
understand the various choices.
