What is "individual health insurance"?

Individual health insurance refers to a type of health coverage that is acquired directly by individuals or families rather than through an employer-sponsored plan. This means that the policyholder is responsible for paying the premiums and selecting coverage according to their specific healthcare needs. It is designed to offer flexibility and options tailored to the unique circumstances of individual policyholders, which can include choosing providers and varying levels of coverage.

Government-funded health plans for low-income individuals, while essential for aiding those who qualify, fall under a different category, such as Medicaid, and are not classified as individual health insurance since they are based on financial aid structures rather than personal purchase.

Policies that automatically renew each year might have their advantages, but such a feature alone does not define individual health insurance and can apply to various types of policies. Additionally, plans that cover only hospital expenses are often considered limited benefit plans and do not encompass the broader scope of coverage that individual health insurance typically includes, which can cover a wide array of medical services, including preventive care, outpatient services, and prescription drugs.

Thus, the essence of individual health insurance lies in its independence from employer involvement and its customization to meet the healthcare needs of those who purchase it directly.