Chapter 4What Is Individual Health Insurance?
There is a new and better way to purchase health insurance for you and your family. It's called individual health insurance. Individual health insurance is a policy you purchase directly from the insurance company through a licensed health insurance broker or through the Health Insurance Marketplace in your state.
If you have never heard of individual health insurance before, you are not alone. Prior to 2014, less than 10 percent of the U.S. population (20 to 30 million Americans) had this type of insurance while most Americans (more than 160 million) relied on health insurance purchased through their employer. However, due to the advantages of the individual market (such as lower cost, choice, portability, and guaranteed acceptance), U.S. companies are terminating employer-provided health insurance in favor of employer-funded individual health insurance.
As a result, the number of Americans purchasing individual health insurance is expected to grow to 150 million by 2025. Soon, it will become commonplace for employees to purchase a plan on their own—just like car insurance.
The Advantages of Individual Health Insurance
There are four primary advantages of individual health insurance for you and your family: lower costs, choice, portability, and guaranteed acceptance. (See Figure 4.1.)
| Employer-Provided Health Insurance | Individual Health Insurance | |
| Keep your plan when you switch jobs | No | Yes |
| You choose the coverage and doctors ... |
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