0:00:00.990,0:00:03.060
- So there are three ways[br]that you might be able

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to get yourself health insurance.

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The first way is that[br]you just get it directly,

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and that would be an individual plan.

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You pay the premium,[br]you get the insurance.

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The second way is many employers[br]will provide insurance.

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They will pay all of the premium,

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or a large chunk of the premium,

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in certain cases, they might[br]even pay a large chunk,

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or the full premium for family members,

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and then the third way is the government.

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You have programs like Medicare

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for primarily senior citizens,

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some other cases where other[br]folks might qualify as well.

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You have Medicaid for low income folks.

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You have also government[br]programs for say, veterans.

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Now, as I just alluded to,

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probably the biggest difference

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is who actually makes the payment.

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The government programs,

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it's the government who's[br]making the premium payment.

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In the employer case, it's the employer,

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and they're doing that with[br]pre-tax money, which matters.

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They're giving this to you as a benefit

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and you do not pay taxes

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on the money that they are[br]paying for your insurance.

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Well, with an individual plan,[br]you pay that out of pocket.

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You pay that yourself.

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Now, if you meet certain[br]income guidelines,

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and if you pay enough of a premium

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above a certain percentage of your income,

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some of that might be tax-deductible,

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but it is not fully tax-deductible

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the same way that when[br]your employer pays for it,

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you don't have to pay any taxes

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on that premium that they're[br]providing you at all.

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Now, on the individual side,

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because you are essentially[br]deciding what type

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of insurance you want,

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it would give you the maximum choice.

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Now, in certain cases,[br]that choice is limited,

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because when you're[br]getting an individual plan,

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they're deciding what the premium is or

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whether to even insure you[br]based on your situation,

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whether you have pre-existing conditions,

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your risk factor, et cetera,

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while with a government[br]or with an employer plan,

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they're not looking at your[br]individual circumstances.

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With an employer, the insurance[br]company will say, okay,

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what's the average risk[br]of all of the employees?

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And if you're a higher risk employee,

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the employer's going[br]to pay the same premium

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for you as they're[br]paying for everyone else,

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and so you get that same coverage.

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One potential negative[br]of an employer plan is

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that it might be a little[br]bit more limited in terms

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of the coverage options,

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but that's not always the case.

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Finally, government, you are going to have

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probably more limits on what type

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of healthcare you might[br]get, but once again,

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they are fully paying the premium there.

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Last but not least, we could[br]talk about deductibles.

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Generally speaking, the government plans

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are going to have the lowest deductibles.

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In some cases, they will[br]have no deductibles.

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In the case of an employer-sponsored plan

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or an individual plan,

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it really depends on which[br]plan you actually get.

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So for a lot of folks,

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if you're not retired,[br]if you're not low income,

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employer-sponsored plans are[br]probably where you wanna go,

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but if your employer[br]doesn't offer those plans

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or you're self-employed

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and you need get that insurance yourself,

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then of course, individual[br]plans is what you need to do.