Many people purchase private health insurance plans when they own their own business or work for a company that does not provide group health insurance. Although many times these plans work just fine for the person that purchases them they can also have some serious disadvantages. These disadvantages can cause an increase in cost, rates that seem to frequently rise and even an inability to afford the cost of coverage all together.
Rates and Costs
In most states a private insurance plans are underwritten based on your age, weight, health status and history and whether you use tobacco products. As a result, some private health insurance plans will raise their rates for people as they age or if the person has an unsatisfactory health history or habits. This practice may seem unfair but it is perfectly legal in the private sector and can lead to very costly private insurance packages for you and your family.
Pre-existing Coverage
According to Healthreform.gov denial of coverage for pre-existing conditions affects millions of Americans every year. A pre-existing condition is a medical condition or disease that was present before the person applied for or was approved for health insurance coverage. As a result, private health insurance companies have the right to deny coverage for people that have pre-existing medical conditions such as cancer or other serious illness. This can result in denial of coverage for testing, procedures, diagnostic x-ray's or even surgeries that can be related back to the illness. Unfortunately, this can result in expensive medical bills for the person and a person may even not be able to afford this type of coverage.
When to Pay
With private insurance plans a person has to keep up with when it is time to pay. With group insurance plans the cost can be deducted from your paycheck. However, with a private insurance plans the sole responsibility for payment is left up to the purchaser. Therefore, you have to keep up with when the policy payment is due so that your coverage will not lapse. According to the website for healthinsurance.info which assists consumers in choosing the best types of health insurance, you can choose to have your plan automatically renewed and in this case it may be possible to have the money deducted from your bank account. In addition, private insurance policies can be rather expensive and there is no help from your employer with paying a certain percentage of the cost.
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