Private Market Health Coverage
Private health insurance includes any health plans that are not through a state or federal exchange, employer, or federally funded program such as Medicare/Medicaid or The Affordable Care Act. Private insurance must be obtained through an appointed agent. Private options are not subjected to an “open enrollment period," meaning they are available for enrollment year-round.” Types of private policies include full coverage plans, short-term options, major medical plans, and supplemental coverages such as dental, vision, and policies designed to minimize out of pocket costs due to accidents, major illnesses, and disabilities. Unlike Affordable Care Act Insurance Plans, private health insurance is not priced based on your income, but rather on the age attained of the applicant.
Pro’s:
Price and coverage does not fluctuate based on income
No possibility of tax penalties
Lower risk category allows for lower monthly price and better coverage
Generally, have lower deductibles and better coverage
Can enroll at any time
Con’s:
Not all plans accept everyone, but there are guaranteed issue plans that will
No income-based discounts
Not all plans have “Minimal Essential Coverage” requirements
Need a licensed advisor/ broker to apply you
Who would benefit from a Private Health Plan over a Public Market Health Plan?
Private health plans are best for individuals and families that make too much money to qualify for significant subsidies through the public marketplace, or those families who need to enroll in health coverage outside of open enrollment without a qualifying life event.
Self-employed persons also can benefit from a private market plan for tax deductions. Anyone who files 1099 can write-off any premium payments or medical bill payments on their taxes as tax deductible. This will allow self-employed individuals to receive a tax discount when they file income taxes. See more about why private health insurance is beneficial for 1099 tax filers.
Fill out our free form to see if a private health insurance plan is the most affordable way to get you covered.
