Before you choose your health insurance coverage, it is good to find out what different types are available to you. In general, there are two types of health insurance plans: group plans and individual plans.

1. Group Health Insurance Plans

Employer-sponsored Plans

Most people are familiar with employer-sponsored health insurance plans. When you work for an employer, they provide a group policy for their employees. Typically, they subsidize part of the cost and the employee pays the rest.

Other Group Health Insurance Plans

Many professional organizations offer some sort of health insurance plan. They may offer a group comprehensive medical insurance plan or a more limited supplemental one. If you are a member of their organization, you are eligible for coverage.

2. Individual Health Insurance Plans

An individual health insurance plan is one that you have to purchase directly from the insurance company. You apply for coverage for yourself and/or your family. The insurance company looks at your health history and decides whether or not they want to cover you. Once you are approved for coverage, you are responsible for the entire insurance premium which is usually significantly lower than what you would pay for a group plan.

Although some health insurance companies guarantee your premium rate and coverage on a year-by-year basis, others do not. This is one of the frustrating things about individual insurance. Your coverage is under the control of the insurance company.

Steven D. Smith is a licensed life and health insurance professional and CEO of SDS Financial, LLC.  He is also the author of the “ 2008 Guide to Choosing and Using Your Health Insurance Plan” and “ Your Guide To Good Health Insurance”.  Other articles and books about Health Insurance written by Steven Smith can be found at his website www.AvoidingBadHealthInsurance.com  

Source: http://www.AvoidingBadHealthInsurance.com

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