Someone might choose to buy an individual health insurance plan instead of going through an employer-sponsored plan for several reasons including cost control, flexibility, personalization, and portability.
Cost Considerations
Individual health plans can sometimes be more affordable or provide better cost control, especially for small or medium-sized business employees whose employer group plans may have rising premiums and strict participation requirements. Individual plans offer the ability to shop around for plans that best fit personal budgets and needs, sometimes with potential government subsidies if eligibility criteria are met.
Flexibility and Personalization
Employer plans often require employees to be enrolled in a one-size-fits-all group plan that may not suit individual health needs or preferences. With individual insurance, buyers can select plans tailored to their specific circumstances such as preferred doctors, chronic condition management, or budget constraints. This choice enables individuals to personalize coverage rather than accept a plan chosen by their employer.
Portability
An individual health insurance plan remains with the insured irrespective of employment status, so coverage continues uninterrupted when changing or losing a job. In contrast, employer-sponsored plans typically end with employment, often requiring costlier COBRA continuation coverage to bridge the gap.
Other Factors
Individual plans are guaranteed issue, meaning they are available regardless of health history or conditions, offering more stability in coverage costs over time. Employer plans might undergo underwriting or have stricter eligibility affecting coverage terms.
In summary, individual health insurance appeals to those seeking greater control, customization, ongoing coverage regardless of job status, or who find employer plans less suited to their circumstances or cost considerations.