Health care is a major cost for typical American households, particularly if health insurance is not provided by an employer. The Obama administration has promised health care reform since taking office, but many people can’t afford to wait until favorable legislation works through Congress. Therefore, it is important to understand your options for individual health insurance coverage.
COBRA is a program that allows you to continue your previous group health insurance plan for a period of time after voluntary or involuntary job loss. The premiums are generally high, since employers usually subsidize group premiums, but they are still lower than private health insurance plans. This is generally the best health coverage option for a short-term employment gap.
Individuals working as private contractors and entrepreneurs often have a more difficult time finding health coverage, but there are still options. Many trade groups for industries dominated by individual workers, such as freelance writers or artists, offer group policies to members that are cheaper than individual plans.
High deductible plans are a riskier move, allowing an individual to trade low premiums for very high deductibles (often $2500 or more). This coverage works best for people who are young and healthy, and provides protection against catastrophic costs like car accidents.
A last resort can be state health insurance plans. These are generally set up for high-risk groups, and as such can be quite expensive. However, they may be a good option for a person who has gone without health insurance for a long period of time, and who therefore may experience problems getting coverage for what are deemed “pre-existing conditions” by other insurance companies.
Finding health insurance for a private individual can be a daunting task, so careful research is necessary to find a plan that best matches the needs of your particular situation.