Health insurance is a necessity in the United States, but it can be difficult to know which type of health insurance is best for your client’s needs. There are four main types of health insurance: individual, group, Medicare, and Medicaid. If you don’t have employer-provided coverage or you’re not eligible for Medicare or Medicaid, then an individual plan will work best for you. Group plans are often cheaper than individual plans because they provide cost savings through economies of scale; however, there may be restrictions on pre-existing conditions that could make this option less attractive.
Medicare is the federal government’s national health insurance program. Medicare covers persons over the age of 65, as well as those people under the age of 65 who may be eligible due to a disability or other exceptional circumstance. Medicare is divided into four sections. This allows people to have additional health-care options, allowing them to select the plan that best suits their needs. Read more about the 4 parts of Medicare, here.
Medicaid is a program that allows you to receive health care at a reduced or no cost to you. Because Medicaid is administered by each state, eligibility standards differ from one to the next.
Individual health insurance plans
Individual health insurance plans include Affordable Care Act (ACA plans), Short-Term Plans, Medical Indemnity Plans. The Affordable Care Act (ACA) is a publicly held health insurance program that offers millions of previously uninsured individuals. The pros of ACA insurance are that more Americans have access to health insurance, more screenings are covered, prescription drugs cost less, and individuals with preexisting conditions cannot be denied coverage. Read more about ACA plans here.
A group health insurance plan can assist companies to cover the costs of medical care. Group health insurance is available to businesses with one or more employees. Businesses benefit from group health insurance plans because they are more cost-effective. Employee health insurance rates are often less expensive than individual health insurance premiums. Pretax dollars are used to pay premiums, allowing employees to pay lower annual taxes.
We can help break down the different types of health insurance available to your clients. Call us today and we’ll be happy to answer any questions or concerns about health insurance so that you can make an informed decision about what type of coverage is right for your clients: 1800-806-2527.