A few of the more well known independent health insurance companies include names like the Humana Health Insurance Company, Assurant Health, and Axa. Typically these insurance companies are discovered by consumers when they consult a local insurance agent for help in finding health insurance. It’s not often that you find independent companies advertising their health insurance products on television or radio.
You should enter your ZIP code below if you’re serious about searching for independent health insurance policies online.
The good news regarding independent health insurance companies is the fact that their premiums tend to be lower than the competition. On the downside, it may be difficult to find appropriate coverage from an independent carrier in your state.
Because of the nature of this type of health insurance it can be a hit or miss proposition if you’re trying to find a plan or policy on your own. That’s why most people simply elect to get health coverage through their employer.
What is an independent health insurance company?
The term “independent” can apply to health insurance companies in a number of ways. However, for the purposes of this article we will employ the most common definition.
Basically, an independent health insurance company is one that offers individual policies to consumers outside of the typical employer group environment. These types of policies are absolutely essential for individuals who need self employed health insurance, the unemployed, and those who do not have coverage provided through their employers.
Sometimes these independent companies will create a statewide “group” consisting of all the individuals in that state subscribing to a specific plan or policy. Other times companies will completely forgo the health insurance group model because it’s less expensive to treat each individual consumer separately.
Remember that a lot of this has to do with state regulations and demographics. When you’re looking for an independent health insurance policy you will have to take all of these things into consideration.
What types of coverage to independent health insurance companies offer?
In terms of coverage options, rest assured that independent health insurance companies offer most of the same options you’ll find with other insurance companies. However, the National Association of Health Underwriters suggests consumers who need to purchase individual insurance go through a local health insurance agent or a financial advisor.
The reason behind this is the fact that individual health insurance is so complex it’s very difficult for the average consumer to understand without some help. This is good advice you should take to heart if you’re trying to purchase an independent health plan.
It would be unfortunate if you purchased one on your own, expecting certain levels of coverage, only to find out you’re denied in the event of a catastrophic occurrence and you don’t have the money to pay your bills on your own. Someone who understands all of the minute details of health insurance is better able to guide you in making the right choices.
How does an independent health insurance company decide my premium?
If you’re purchasing independent health insurance your provider will determine your premium through a process called “underwriting.” California’s Department of Managed Health Care explains the underwriting process as one in which the insurance company evaluates statistical data in relation to your age, sex, and how much your annual medical bills are likely to be.
In California, a health insurance company must complete the underwriting process, and create records attesting to that, before they can offer you a policy and a premium. Other states might have different guidelines for underwriting, but the process works essentially the same no matter where you are in the country.
An independent health insurance company uses certified actuaries who are experts in statistical data. Actuaries crunch all sorts of numbers that will eventually produce your premium price. It’s interesting to note that such statistical analysis is a very accurate in determining how much you and I are likely to spend each year on health care costs.
Can I be denied coverage from an independent health insurance company?
When you’re buying independent health insurance you are purchasing a policy rather than a plan. As such, you can be denied coverage for a variety of reasons, and pre-existing health conditions are usually among them.
Health insurance companies issue such denials as a means of preventing consumers from waiting until they have an emergency to purchase health insurance. If they did not practice such a policy of denials it is quite likely that many of them would go out of business.
You can search online for health insurance quotes from independent providers by entering your ZIP code below.