Advantages and Disadvantages of Private Health Insurance

In United States, there are more than 200 millions of people having private health insurance currently. There are 2 main types of private health coverage, i.e. managed health care plans and indemnity health plans. Managed health care plans are chosen by people who want to have quality care at an affordable price. On the other hand, indemnity health plans are chosen by people who prefer maximum flexibility in controlling their medical care decisions. Let’s take a look at the pros and cons of obtaining private health insurance.

The Advantages:

·          The policy holders have the freedom to choose their own health plans that suit their budget. They can also change the terms of agreement anytime with their own consent. They don’t have to pay for medical options that they don’t need.

·          The insurance plans will not be affected if the insurers shift jobs

·          The insurers have the freedom to choose the doctors they prefer to perform their medical services. Furthermore, they have faster access to an elective surgery procedure.

The Disadvantages:

·          The policy holders are required to pay for higher premiums due to the increasing health care costs.

·          The individuals may face the risk of being rejected by the insurance providers due to their current medical status or pre-existing condition.

To sum up, it is important for you to look at your financial position first before making your decision whether it is really necessary for you to obtain your own medical coverage. Don’t worry if you can’t afford for a private health care plan. You still have the choices to select either the government or employer-sponsored health plans.

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