Which statement best describes individual health insurance?

Prepare for the Business of Healthcare and Health Policy Test. Study with multiple choice questions and explanations to ace your exam!

Individual health insurance means you buy coverage directly from a private insurer for yourself or your family, rather than through an employer. The key point is that you pay the full premium yourself, with no employer contribution. Because employer‑sponsored plans negotiate group rates and often subsidize premiums, the employee’s share is usually lower than the cost of a comparable individual policy. Coverage isn’t funded by the government for private individual plans, though some individuals may qualify for public programs or subsidies in other contexts. Dependents can be covered under individual plans, so the idea that plans are only for individuals without dependents isn’t accurate. So the best description is that the cost tends to be higher when purchasing directly, since there’s no employer contribution to drop the price.