Individual health insurance is a type of health coverage that a person purchases independently, rather than obtaining it through an employer or government program. It offers a way for people to protect themselves financially against the high costs of healthcare.
Types of Individual Health Insurance Plans
- Health Maintenance Organization (HMO): Requires the insured to choose a primary care physician (PCP) and get referrals to see specialists. Generally has lower premiums and out-of-pocket costs but less flexibility in choosing providers.
- Preferred Provider Organization (PPO): Offers more flexibility in choosing healthcare providers and doesn’t require referrals for specialists. However, it may have higher premiums and out-of-pocket costs.
- Exclusive Provider Organization (EPO): Similar to an HMO but does not require a PCP or referrals. Only covers services from providers within a specific network, except in emergencies.
- Point of Service (POS): A hybrid of HMO and PPO plans, where the insured chooses a PCP and gets referrals to see specialists but also has some coverage for out-of-network care at a higher cost.
- High Deductible Health Plan (HDHP): Typically has lower premiums but higher deductibles and is often paired with a Health Savings Account (HSA) to allow for tax-free savings on medical expenses.