5 Reasons Individual Health Insurance is Gaining Popularity

It can happen without warning—a broken leg, an unexpected hospital stay or a Medicare plan that doesn’t cover every medical service needed. Life is unpredictable. Without health insurance or adequate health insurance, medical bills can mount and take a chunk out of the old wallet.

Take for example knee surgery. On average, it can cost more than $48,000 without health insurance coverage. Compare that to a cost of just more than $4,000 with insurance coverage. Even an average day in the hospital can cost more than $9,000 without health insurance. With health insurance, it costs $3,500.

The sheer costs of medical care without health insurance have always been a driver for individual health insurance plans—but there are other common reasons that are making individual health insurance plans a top option.

Reason #1: Former Employees Need Health Insurance
For former employees no longer on a group health plan, individual health insurance plans are an option for coverage. Dependents who are no longer eligible under their parent’s insurance can also benefit from an individual health plan.

Reason #2: Medicare May Not Be Enough
With the aging of the population, the number of folks on Medicare more than doubled between 1966 and 2000, according to the Kaiser Family Foundation. Today, the number of people on Medicare is projected to balloon from 45 million to 79 million by 2030, Kaiser reports. That increase will bring a demand for Medicare supplemental coverage.

For retired or former employees over age 65, Medicare may not be enough to cover medical services. Some patients may max out on the number of inpatient days covered by Medicare, for example. A senior health insurance plan known as a Medicare supplement policy can pick up where Medicare coverage left off. It’s another way to prevent getting stuck with large hospital bills.

Reason #3: Employees Who Exhaust COBRA Need Coverage
For employees who are laid off or who have terminated employment—and therefore aren’t on a group insurance plan—individual health insurance plans can pick up when Consolidated Omnibus Budget Reconciliation Act (COBRA) plans expire after 18 months. Those plans are offered to give employees the opportunity to continue their health coverage after they leave a job. But if an employee exhausts the maximum time allocated for the COBRA plan, individual plans are an option for health insurance coverage.

Folks with pre-existing conditions who exhaust COBRA benefits are eligible for individual guaranteed issue plans. That’s important to note because it’s a common myth that anyone with a preexisting condition can get any type of coverage under federal health care reform. The truth is, until certain provisions in the federal health care reform law go into effect in 2014, folks with pre-existing health conditions who decline COBRA coverage may not qualify for private individual health plans.

Reason #4: Dental & Vision Coverage
We all know how much a dental crown can be—especially without insurance. If an employer doesn’t offer dental or vision coverage, employees can voluntarily purchase individual dental and vision coverage.

Reason #5: Agriculture is Seasonal—Short-Term Policies Can Fill the Gap
Let’s face it; there will be times employees are between jobs and no longer on a group’s health insurance plan. For those times, short-term individual health plans can provide health coverage. Short-term health plans are for six months or less and are typically cheaper than regular individual health plans. In comparison, regular individual health plans are guaranteed renewable for as long as they are paid for.

Western Growers Insurance Services has been offering individual health insurance plans for the last 10 years and offers plans with all the major carriers in California and Arizona including Anthem Blue Cross Blue Shield, Health Net, Aetna, Cigna and others. Click here for information on our carriers and to get a real-time free quote.

For more information on individual health insurance options, or if you need help determining the right plan for you, please contact us toll-free at 866-308-1899 or request more information.