If you do not have health insurance because your employer does not offer it or you are unemployed, you’re not alone. Up to 45 million Americans did not have health insurance last year, according to the National Association of Health Underwriters. The health care legislation that passed in 2010 will eventually require coverage for everyone, but it does not go into effect until 2014. Buying individual insurance coverage will provide for your health care needs in the meantime.

Individual health insurance is a form of coverage that a person purchases independent of a group. An individual policy is ideal for an older unmarried adult, a self-employed person or an employee of a small business. Individual coverage also works well for a young adult who is no longer eligible for coverage under their parents’ plan.

Individual health insurance presents a number of healthcare options. Most people select a Health Maintenance Organization (HMO), a Preferred Provide Organization (PPO), a Health Savings Account (HSA) or a Fee-For-Service plan (FFS). An HMO is an affordable option that provides acess to a specific network of healthcare providers. A PPO costs a bit more but allows more flexibility in your choice of healthcare providers. An HSA serves as a tax-free savings account that enables you to put money aside for medical expenses. An FFS plan offers traditional coverage in which you pay for health care costs upfront and the insurance company reimburses you.
Read the rest of this entry »