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Pros and Cons of Private Health Insurance Plans

Edward Neeman Published: June 14, 2018 Updated: March 30, 2018

Luxury hospital beds

Private health insurance referrers to insurance plans purchased outside the health insurance marketplaces. Many Americans have private insurance. It is usually a huge monthly expense that some people would rather do without, but what are some of the pros and cons of private health insurance?

Pros of Private Health Insurance 

Choosing Your Own Doctor

Depending on the type of insurance, the private healthcare system may allow you to select a doctor within or outside your network. It can be a significant advantage if you want to be seen by the same doctor all the time.

Health maintenance organizations will only allow you to select a doctor within your network. Preferred provider organizations will let you choose a physician within or outside your network but with an additional fee. Indemnity health insurance will allow you to select any doctor or hospital with no extra costs.

Shorter Wait Times

Private healthcare facilities are usually less busy. The waiting period will, therefore, be shorter compared to public facilities. You can get treatment as quickly as possible regardless of whether it is an emergency or not. Even in cases where the line is long, you can always pay extra to get faster medical attention. 

Improved Facilities

Public health facilities are funded with government money, and it may never be enough to cater for everyone’s needs. Such facilities are often overcrowded and may lack comfort amenities. Private facilities, on the other hand, are well funded and thus well maintained. You should expect to find comforts such TVs, better food, and phones. 

Unrestricted Visiting Hours

Unlike public health facilities, some private hospitals will allow unlimited visiting hours for guests. This means that your loved ones can visit you in the hospital at their convenience.  

Private Rooms

Unlike the overcrowded public facilities, private facilities will give you your very own private room. You don’t have to worry about being in a mixed-gender ward. Some policies will even allow you to have an ensuite bathroom.

Cons of Private Health Insurance

Higher Costs

Although the United States Government could be saving a lot of money by having a private health system, Americans are paying more for healthcare coverage than they would typically pay in a public system. Those who don’t get private insurance through an employer will spend even more. 

Inequalities

Whenever healthcare insurance is privatized, insurance companies and healthcare providers will always put their needs above everything else. They focus on their bottom line and will give priority treatment to those who have the money to pay. In a public system, everybody is treated equally whether they have the money or not. Those whose health conditions are more severe will generally receive treatment first.

Limited Coverage

Whenever the cons of private health insurance are discussed, coverage of medical services will always come up. This is because Private health insurance does not cover all conditions. You will need to choose a health insurance plan that suits your individual needs best, and that will fit into your budget. Unfortunately, you will never find a perfect health insurance policy.

You will have to choose which health benefits to consider and which ones to ignore. If you make the wrong choice, you will end up with an insurance policy with huge gaps that will either deny you treatment or force you to pay high costs. 

Out-of-Pocket Expenses

Some insurance companies will only cover 80% of your total costs of care. Therefore, you should be prepared to budget for several out-of-pocket expenses.

Health insurance is important to any individual because you can never predict when you will get sick or get into an accident. It is better to be prepared for any eventuality. After examining the cons and pros of private health insurance, you will need to select a plan that best suits your needs, and that can fit your budget. Search for affordable private health insurance quotes today and get a health plan that is right for you.