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What Factors to Consider When Choosing Individual Health Insurance

Choosing individual health insurance may seem complicated, but it doesn’t have to be!  Oftentimes, employees feel like they’re playing a guessing game when trying to select which individual plan is best for them. Let’s take the guesswork out of choosing individual health insurance by evaluating the data behind this important decision!

Income

Household income is one of the leading factors that influences employees’ health benefits choices. Our National Health Benefits Analysis analyzes the correlation between average income and individual health insurance, represented in the graph below. 

When choosing your own health insurance, referring to choices made by individuals with similar incomes can serve as a helpful recommendation. Let’s use Marketplace plans as an example. 60% of families and individuals choose Marketplace plans when given the choice, making these plans the most popular individual health insurance choice. Furthermore, these plans actually use household income to determine an employee’s savings for the year — so if your income aligns with any of these national averages, it’s likely best to evaluate that individual plan option first!

Plan Type

It’s important to remember that one size never fits all when considering employee health benefits. That’s why there are various individual health insurance plans to choose from! Individual plans address different needs, which is why it’s so beneficial when employers ditch their traditional group plan and let  employees choose their own health benefits. 

For example, Off Exchange programs and Marketplace plans are typically catered toward people with different average incomes and address different areas of need. Off Exchange programs are often chosen by those who are ineligible for Advanced Premium Tax Credits (APTCs) and have a higher income. Conversely, individuals with Marketplace plans are able to utilize APTCs to help supplement their household’s total income. 
As an employer, having diverse plan options makes it even easier for all your employees to be satisfied with their individual health insurance choice!

Age

Some individual health insurance plans are tailored to serve certain age groups. Medicare represents this age-specific coverage – only individuals age 65 or older are eligible for these plans. Conversely, CHIP is a program that helps cover the costs of children’s health insurance for qualifying households! Keep in mind that there are plenty of other individual health insurance options to choose from. Refer to the graphic below to see how age and other demographics correlate with plan choice.

State

Did you know that your location can influence your individual health insurance savings? When it comes to Marketplace plans, each state has different levels of tax credits available. The powerful impact of Advanced Premium Tax Credits actively helps individuals discount the cost of their individual coverage. 
As you can see in the table below, some states such as Nebraska and Indiana experience significant savings as a result of these tax credits. Keep in mind that all 50 states have some level of tax credits available — which almost always make individual plans a more affordable option compared to traditional group. In fact, the average annual tax credits per individual is $8,948. If your company is based in one of these top states, take advantage of the huge savings from APTCs by switching to individual health insurance!

Choosing Individual Health Insurance Can Be Easy!

Remembering these data-based factors can help simplify the process of choosing your own individual health insurance. Many factors such as income, plan type, age, and an employee’s state of residence play into the best individual plan option for them. That’s a lot to consider!

Thankfully, Remodel Health can help alleviate the stress of choosing individual health insurance! Our team of licensed benefits advisors and our expert software can help you cut costs and improve your team’s health benefits! 
Now is the time to design a health benefits plan that fits your people with a custom Health Benefits Analysis. You’ll receive genuine, anonymous feedback from employees about your current health benefits and actionable next steps about how to ensure everyone can choose the individual health insurance plan that is right for them!

Important Notice: Remodel Health does not intend to provide specific insurance, legal, or tax advice. Remodel Health always recommends consulting with your own professional representation to properly evaluate the information presented and its appropriate application to your particular situation.