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Songer Benefits, Inc. Blog

All You Ever Wanted to Know About Insurance

Individual Health Insurance

A broad definition of individual health insurance is a personally purchased contract of insurance that provides benefits in an insurance illness or injury. Medical expense insurance pays for or provides access to services of medical professionals, facilities, and institutions required for the treatment of illness or injury or the maintenance of well-being. With the advent of the Affordable Care Act, medical expense coverage will be available to virtually all Americans.

Individuals may have health insurance protection from various sources, And this often introduces complexity into the decision to purchase an individual health insurance policy. Proper planning cannot occur without understanding coverage an individual already has in government and employer-provided protection. Individual health insurance is typically purchased because benefits under these other programs are either non-existent or insufficient.

Several developments are changing the current health insurance environment and are making the need for individual health insurance planning and advice from an insurance professional more critical than ever. These developments are declining employer funding of benefits, Medicare reductions, increased personal responsibility, and health care reform.

Health insurance policies evolved over the years in response to many forces, including legislation in regulation of economic and social conditions, the financial stability of insurance companies and competition, and other market demands. Because these forces are ongoing, products will continue to evolve, and new products will continue to develop.

Medical expense insurance rose from virtual nonexistence at the beginning of the 1930s to become a primary payment structure for medical care. Without this form of health insurance in the private sector, the United States may have had little choice other than establishing a government-funded system for financing medical care.

Medical expense insurance premiums may be deductible in determining a person's taxable income, while medical expense benefits received by the insured are generally non-counted as taxable income. Federal legislation now extends tax-preferred status to health savings accounts, establishing conjunction with certain kinds of medical expense policies, known as how deductible health plans—nevertheless all high deductible medical expense policies or tax-preferred concerning premiums and benefits. 

There are many types of insurers and health plans in the marketplace to purchase health insurance. These include insurers and managed care plans; they can be sponsored by insurance companies, HMOs, PPOs, PHO, third-party administrators, and other sponsors.

The state individual health insurance exchange began selling medical expense coverage effective January 1, 2014. As mandated by the Affordable Care Act. These exchanges provide an insurance marketplace for individual medical expense coverage. A song or benefits located in Beckley, WV, access all individual health insurance markets. For more information on individual health insurance, don't hesitate to contact us.