How to Shop for Individual Health Insurance

If you find yourself in the position of shopping for an 
individual health insurance policy, there are certain things 
you'll want to keep in mind. Whether you are coming out of 
a job that covered you before, or are at the end of your 
COBRA benefits, or simply have never had coverage before 
there are things you can do to get coverage on yourself and 
your loved ones.

The basic thing to know is that if you have a shot a group 
health insurance, whether through a job or an association 
you're a member of, that is usually much more affordable 
than buying individual health insurance on your own. First 
you need to figure out your health insurance goals; in other 
words, what are you after? If you're young, healthy as a 
horse, no dependents and not attempting Mt. Everest next 
week, you may want to opt for a policy that covers only the 
catastrophes, and cover the rest out-of-pocket. On the flip 
side of that, if you're the sole bread winner with a family 
to support, the scenario is different.

The basic choices you'll have are Fee-for-Service, Managed 
Care Plans, and Association-based health insurance. Fee-for- 
service is the traditional indemnity plan, harder to 
acquire, more expensive, but usually great coverage. 
Managed care plans include most HMO's and PPO's. These offer 
lower costs but your choices are somewhat limited. Another 
way to get insured is through a group or association you 
may already be a member of, such as professional, religious 
or trade organizations. Often they may offer health 
insurance. It's worth checking out, as sometimes you can 
strike gold in this vein.

Things to consider when you're looking for any policy are 
what's covered on this plan, how much are the monthly 
premiums, what is the yearly out-of-pocket, what is the 
deductible, how much are office visits, does it cover 
preventative medicine, vision, dental? And I'm sure you can 
come up with many of your own. Sit down before you go 
shopping and make a list of your needs and wants, and decide 
in advance what you're willing to give to get. Be aware that 
once you start getting quotes they can vary as much as 50% 
for the same person! Remember, you're shopping, and nobody's 
making you do anything. If one insurer isn't cutting it, 
move on to another. If you're coming at this cold and have 
no good recommendations it may be wise to use a broker who 
represents several companies, as he or she wil be more 
likely to find the best policy for you, as opposed to 
selling the company they work for.

Shopping for individual health insurance can be 
frustrating and time-consuming, but if you come armed with 
facts you'll be able to navigate this highly competitive and 
ever-changing field.