Buying Private Health insurance

Buying Private Health insurance

Buying Private Health insurance

Health Insurance is one of the most essential insurance every individual should possess as it covers the cost of medical care and every individual should buy it.

Buying health insurance in a private company is not common as it is quite expensive. If you are buying health insurance, either as an individual or a company you are expected to pay a monthly premium for coverage.

Most Individuals who have decided to purchase their health insurance from a private company do not benefit from health insurance as part of their employee support.

However, health insurance cannot only be purchased from private companies but also government-insured policies such as Medicare and Medicaid.

But an individual who is not covered by public health insurance or is partially covered will need a private health company.

If you want to know more about buying health insurance in a private company then you should keep reading.

Buying Private Health insurance

Who can buy it?

Every individual above the age of 26, is required to obtain health insurance. Most individuals who are employed get health insurance benefits from their employer.

Those who do not or who are partially covered can buy health insurance from other private companies.

However, public health insurance such as Medicare and Medicaid are also available for certain individuals.

Medicare is available for people who are 65 years or older, those having a disability, or renal end-stage disease are eligible to benefit from Medicare.

Also, Medicaid is a public health program obtainable by low-income  Americans irrespective of their age.

Nevertheless, you can buy your health insurance from a private company if you are

Aged 26 or older

According to the Affordable Care Act (2010), only young individuals who are aged 26 are eligible to obtain health insurance.

If you are under the age of 26, then you can be insured under your parents’ health insurance policy. Since you are not eligible for Medicare at this age and you may not be for Medicaid then you can buy your health insurance.


Individuals who are not employed cannot benefit from an employee’s health insurance. They may own a business or be a freelancer and hence need their health insurance.

However, these individuals can get an insurance plan through their spouse’s plan. If not, they can buy their insurance policy.


If you are unemployed because you have lost your job and are no longer under any health insurance, you can buy one from a private company.

Moreover, you can choose to still maintain your employer’s health plan for months, usually 36 months.

This can be achieved through a program known as COBRA ( Consolidated Omnibus Budget Reconciliation Plan).

Enrolling in COBRA is quite expensive as you are expected to pay for the entire cost of your health insurance coverage meanwhile your employer pays for a portion of your healthcare if you were employed.

A Part-time employer

If you do not work full time in your job then it is likely you are not covered by an employer’s health insurance. You can buy your health insurance from a private company.

A business owner who has employees

Having a business can be very competitive, to assure your employees that they are covered by health insurance is a good way to attract qualified employees.

Although it is not compulsory, it is necessary that you buy a business health insurance plan also called a group plan.

A Retiree

Every individual who has retired is expected to purchase a health insurance plan. This plan is very essential because as you get older you are vulnerable to certain illnesses.

You can apply for Medicare if you are 65 years or older, if not you should buy your insurance plan.

It is important to note that Medicare, Medigap, or other advantage plans are only for an individual benefit.

Your spouse, children, or other individuals cannot benefit from your Medicare plan.

Dropped by an existing insurer

If you have been dropped by an insurance company because it has become expensive that you cannot afford it then you can buy your insurance.

Buying Private Health insurance

Where you can buy

Buying private health insurance can be very costly. It is advised that you choose a plan you can afford if you are buying from a private company.

If you are 65 years or older then you are eligible to benefit from the government health insurance Medicare.

You can complement this plan using Medigap, Medicare Advantage plan, or other private health insurance companies. Other places you can buy health insurance includes;

You can obtain health insurance using This health insurance marketplace was created in 2014 under the Affordable Care Act (ACA).

Individuals can enroll during the open enrollment period which is usually between 1st November and 15th December of every year.

You can visit the Health Insurance Marketplace website to find out more about the options for health insurance coverage where you live.

The website also includes information about private plans that are attainable for purchase outside the marketplace.

If you are buying a plan outside the ACA marketplace then you will not be eligible for subsidies that are under ACA when they are available.

Private insurance companies

There are several different private insurance companies you can buy health insurance from.

The premium and plan depend on your location and age. You can browse different health companies in your area and choose the one you can afford as well as coverage.

If you are buying a family plan or a business plan you should consider the needs of those that will be under the plan.

It is important to note that the price on every website is usually their lowest price as they assume you are in the perfect state of health.

Therefore,  it is difficult to know the exact amount you are paying for through the website. You only know what you are paying for if you apply and you provide them with your medical history.

Buying Private Health insurance

How much does it cost?

The cost of buying health insurance from a private company is not fixed. The cost varies in each health insurance company and it depends on your location, the plan you are buying, and the level of coverage you want.

However, In 2021, the average cost of health insurance for an individual was $456 while for a family it was $1,152 per month.

Why should you buy it?

If you are not covered by any health insurance policy then you should buy a health insurance plan you can afford. Buying health insurance can help you during medical health emergencies.

Imagine you are sick and the cost of treatment is so high that you cannot afford it. If you do not have a health insurance plan to assist you to pay for this unexpected cost you’ll have to pay for it yourself.

You may also benefit from an income-based premium tax if you purchase through the Health Insurance Marketplace.

Even though you cannot afford some health insurance plans, any amount of coverage will be advantageous for you.

This way, you will get assistance in case of an accident, a prolonged illness, or any other medical emergency.


You may think it is not necessary to obtain coverage for health insurance.

However, every individual must buy health insurance if they are not covered by one.

This article contains everything you need to know about buying private health insurance.