Employer Provided Health Insurance Vs Individual Health Coverage

Any debate between individual health insurance vs employer provided health coverage could be a needless one. Instead, it could be much better if you understand the pros and cons of either of the options. While it is possible to buy individual health coverage plans on your state’s marketplace exchange online or directly from an insurance company, millions of Americans that work for their organizations are covered under health insurance policies that are provided by their employers.

Pros and Cons for Employer Provided Health Insurance

Pros:

• You do not have to bear entire cost of premium, as your employer is likely to share some portion of the costs.
• The part of premium that you will pay may qualify for tax deduction under IRS rules & regulations.
• Getting enrolled for such employers’ plans is easy as you can sign up during the open enrolment period.

Cons:

• Options for employer’s health insurance plans could be limited.

Pros and Cons for Individual Health Insurance Plans

Pros:

• Plenty of options are available for individual health insurance coverage.
• You can buy health insurance from online marketplace exchange or companies directly.
• You may even qualify for significant reduction in premium if you meet income requirements.

Cons:

• You will have to bear entire annual premium amount and this makes the proposition expensive.
• You may face some difficulties in finding the right type of personal health insurance coverage.

The main point of contention between health insurance through employer vs personal is that determination of costs for individual health plans is not that easy. This is because the outcome will depend on some variables like some members to be insured in family, pre-existing medical conditions that require regular doctor visits and medicines, need for any surgeries in near future, etc. On the other hand, employers may assist you in comparing several options by providing the right type of tools and advice. You only need to compare your alternatives and decide what the best option for you is. You need to act fast as 2018 could be last year for getting benefitted with federal government subsidies.