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Individually Purchased Family Health Insurance In US

According to statistics released by US Census Bureau, 9% of Americans are under private family health insurance. The products offered under these policies are similar to those offered under employer program. The only difference comes in the fact that employees do not benefit from the employer provided benefits. This implies that clients purchasing these policies normally have higher out-of-pocket expenses, co-payments and deductibles than their counterparts holding employer-purchased family health insurance plan.

Individually purchased family health insurance price is normally high since there are no employer benefits the helps to reduce the amount of premiums pad. For the self-employed persons, they get tax deduction for of their health insurance.  These tax benefits can be used to purchase more insurance cover. However, consumers in individual market have no tax benefit or allowance of any kind that can help to keep the premiums low.

Individually purchased family health insurance quotes vary predominantly depending on age and health status of the individuals encompassed in the insurance plan. Nonetheless, the new family health insurance reforms due for implementation in 2014 have recommended prohibiting insurance companies from increasing the cost of the policy or failing to insure clients because they have existing medical condition.

Individual family health insurance prices are lower for clients who pass medical underwriting plans (in places where they are still used) than employer sponsored plans when you look at the entire premium amount contributed by the employer and employee.  The main factors that may influence these differences may include: higher beneficiary cost sharing and age difference. Besides, many individual family health insurance buyers only purchase the benefits they are certain they will use while employer sponsored clients purchase even covers that they may not necessarily require.

Another common reason why individual family health insurance policy holders in US might get lower premiums is the fact that they have high probability of reporting being in perfect health condition than employer-sponsored clients. The premiums of the individually purchased family health insurance in US increased by a smaller proportion (17.8%) than the out-of-pocket premiums in employer sponsored insurance programs (34.4%).  However, it is essential to understand that the upwards adjustment of the policies did not improve the benefits acquired from the policies.

Analysis conducted in the recent past also confirms that individual health insurance clients are extremely sensitive to the price of the policies. The demand elasticity approximates of the market differ but basically range between -0.3 and -0.1. The level of price sensitivity ranges among population categories. Generally, it is higher lower income and younger individuals.

In a study conducted among people who have no alternative sources of health cover, the number of clients purchasing individual family health insurance rises depending on the level of income.

Could you be self employed or you don’t have alternative family health insurance plan? Can you spare a couple of minutes? Just type your zip code on the search box above and you will be a step closer to getting comprehensive information regarding individually purchased family health insurance in US.