Private Insurance
A majority of the U.S. population is covered by private insurance provided either through an employer or purchased directly by an individual. Under employer-based coverage, employers contract with insurance companies to offer health insurance to their employees, and the employee and the employer share the cost of the insurance premium.
While the majority of those who are privately insured receive coverage through their employer, individuals who are self-employed or who do not receive health insurance through their employer can purchase health insurance directly from an insurance company. While direct-purchase insurance can be a good option for some individuals, it can be an extremely expensive option for anyone with a pre-existing condition.
The rising cost of private insurance is increasingly straining employers’ and individuals’ abilities to purchase coverage. As insurance premiums have risen, employers have increasingly looked to their employees to help share the cost, and in rising numbers, employers are opting out of providing coverage altogether. As with employer-based coverage, as insurance premiums have risen, the number of individuals choosing to directly purchase health insurance from an insurance company has declined.