Many people get their health insurance from their job. However, more and more people are getting individual health insurance plans. Individual health insurance is on the rise, whether you’re an entrepreneur or a part-time worker. Employer-based plans are limited to what the business offers. With individual healthcare policies, you have more choices to pick the plan that’s right for you.
If you are transitioning from group insurance to individual, or simply want to know more, the following information can help you understand your options and select the plan that is best for you.
Individual long term health insurance is coverage that is not part of another organization. If you are not part of a group, such as an employee of a business or a member of a union, you will need to purchase individual coverage.
Unlike employer-paid coverage that lets you sign up when you join the company, you cannot get an individual plan at any time. You can only enroll in an individual health plan during a certain time of the year, or during a special enrollment period.
The one time of the year you can sign up is called the open enrollment period. Open enrollment is at the end of the year, and your coverage will start on the first day of the new year.
A special enrollment period starts when you have a qualifying event, such as:
· Losing your medical coverage from work, school, your parents, or a government assistance program.
· Changes in your household, like getting married or divorced as well as experiencing a birth or death in your immediate family.
· Moving to a new location that is in a different county or ZIP code.
· A change in your income that affects your coverage, like low-income coverage.
· Becoming a United States citizen and becoming newly eligible for insurance.
· Getting out of jail.
For some, having an individual health plan may provide more benefits than taking part in a group plan. But, if you are not eligible for a special enrollment period, or you will need to wait for the end of the year to sign up for one.
Next, learn if individual health insurance plans are right for you.