Obamacare

Private Health Insurance Plans

Private Health Insurance Plans

Private health insurance plans are either regarded as a perk in terms of some type of employment benefits package, or are regarded as an absolute necessity in terms of providing some type of insurance coverage for an individual in the event of paying some or much of the healthcare costs.

Where private health insurance plans are considered a perk, this is normally because there is some type of state funding of health care costs, and private healthcare plans either cover areas of medicine not included under state funding, or where private health insurance plans effectively allow the individual to queue jump other people and get their hospital treatment or primary care access quicker than under state funding.

When there is no state funding of health care costs, or very little, then private health insurance plans are quite literally a lifeline for many people. Health care reform in the United States, commonly called Obamacare, sought to address the issue where many millions of Americans had no health care insurance at all.

Private Health Insurance Plans

Private health insurance plans will give some benefit to individuals, but need to be understood carefully as they can also be slightly misleading.

Many people assume that health insurance works same way as other types of insurance, such as car or home insurance.

This is essentially not true, and there are normally many more costs involved with health insurance, under a private health insurance plan than there are costs associated with more domestic types of insurance.

Private health insurance plans should outline exactly what benefits are covered in terms of primary care, hospital care, health promotion, other healthcare practitioners, pharmaceutical drugs etc. A private insurance plan will be very specific in terms of exactly what is and is not covered.

In terms of costs there will be an annual premium, often payable monthly, as well as possibly several deductibles, co-insurance and co-pay. These additional costs should be borne in mind when working out the true cost of a private health insurance plan.

For many people the cost of a private health insurance plan will paid for by their employer, and it is important to be clear about what the employer is paying for or not.

The employer may well pay the insurance premium, but not pay the deductible or co-insurance, or they might be willing to pay the whole thing. Accepting what costs of it be born and by whom is a key element of understanding the true cost of a private health insurance plan.

Share