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What is Private Health Insurance?
Private health insurance is health insurance that you purchase, or that an employer purchases for employees, from a privately owned company.
In contrast, public insurance is usually state or federally funded, like Medicare, Medicaid, or SCHIP (the State Children's Health Insurance Program). Public insurance will have specific qualifications and guidelines for those who want to apply for their coverage.
Employers can purchase private health insurance in the form of group policies. This makes medical insurance more affordable to employees, since group prices are almost always lower. Health insurance agencies assume that most of the people in the group will stay healthy and that only a few will get sick and cost them money. So, they can afford to offer coverage at lower rates.
Private health insurance companies also offer individual policies, though these can be more expensive and harder to qualify for than group policies.
There are many different insurance agencies out there available to the consumer. If you think you may qualify for public insurance be sure you understand what is and isn't covered should you get sick, or injured, or need medication.
If you're looking to purchase individual coverage from a private health insurance company, shop around aggressively and get quotes from several different agents. Often, health insurance companies will offer you a better deal if they know you're comparing coverage and costs, and generally shopping around.
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