Private Family Health Insurance Explained: What It Is, Benefits & More

Key Takeaways

• For families who don’t qualify for discounts through government-sponsored health insurance, private insurance plans offer an affordable and customizable option for healthcare coverage for families.
  
• Individuals can purchase a private family health insurance plan through a broker, by signing up at work if their employer offers health insurance or through the ACA marketplace.
  
• Often, the best first step to take in securing private health insurance is to talk with an insurance broker. An insurance broker can present all private family health insurance options, including ACA marketplace plans, and help people sign up for insurance immediately, even if it’s outside of an enrollment period with another
• plan.
  

What Is Private Family Health Insurance?

Private family health insurance includes any type of health insurance that’s not government-sponsored. Public health insurance may include insurance from programs such as Medicare, Medicaid and the Children’s Health Insurance Program (CHIP). These are programs providing health insurance to specific groups, such as senior citizens, those with disabilities and families whose income falls below a certain amount. 

Private family health insurance can include employer-sponsored health plans, as well as family plans that are purchased through a private insurance broker. When you purchase family health insurance through a private broker, there may be more choice in how you can customize the plan’s offering and pricing, compared to selecting a private family insurance plan offered through an employer.

When Is Private Family Health Insurance the Right Choice?

There are only a few situations where choosing a public family health insurance plan makes more sense than going with a private family health plan. If your income qualifies you for discounts through a public health insurance program, it might be smart to choose a public plan to take advantage of these discounts.

The ACA also offers potential marketplace premiums, depending on income. For example, in 2024, in Arizona, a family of four with an annual household income below $43,056 would likely qualify for free or low-cost coverage through Medicaid. A family of four in Arizona with an annual household income of $78,000 or less may qualify for a marketplace plan with lower monthly premiums plus extra savings. 

For families who don’t qualify for federal program discounts based on income, there are often available private plans that are cheaper than federal plans. For insurance holders who are relatively healthy, the savings can be even greater. The younger and healthier someone is when they need private health insurance for their family, the less expensive rates they can secure for ample health insurance coverage. 

What Private Family Health Insurance Options Are Available in Arizona?

In Arizona, there are several ways to find private family health insurance. We recommend you look at different options to compare plan features and costs, so you can select the best plan for your family. An experienced private family health insurance broker can walk you through all your options, including public plan options and ACA plans, so you can also compared those to other private family health insurance options.

Some plans to consider are:

• Work insurance coverage: If you start a new job at an employer that offers health insurance, consider that plan in your options comparison.
• ACA marketplace plans: You can browse the ACA marketplace like you would an online store, to see plan features and prices. The ACA’s enrollment period is between November 1 through January 15 for health insurance coverage the following month(s). There are special life events, such as divorce or death, that could trigger a special enrollment period outside of these dates.
• Private family health insurance broker: An Arizona private family health insurance broker is the easiest place to start, because they’ll do all the legwork for you and can explain your options in clear terms. You can save time researching and reading fine print, by telling a broker exactly what you’re looking for, and having them present you with options. This service is free with AZ Health Insurance Brokers. We offer free consultations so we can help potential clients understand all their options, in case they decide a private family health insurance plan is the best one for their family. With private health insurance, you can get signed up at any point during the year, without having to wait for coverage to kick in, like you would with an ACA plan. You’re not limited to an open enrollment period or work-restricted enrollment period, like you would be with the ACA or with an employer. 

If you need family healthcare coverage immediately, the best step to take is to talk to a private health insurance broker in Arizona. You can talk to someone now to start the process for securing health insurance, whether that’s through a private family health plan, through the ACA marketplace, or by taking the step to sign up at work. Expert guidance can help you make the best decision for your family. 

Benefits of Private Family Health Insurance

There are a few benefits to be aware of with private family health insurance, in terms of both cost and healthcare services. These include:

• Cost savings: With a private plan, you can usually customize a plan exactly how you want, based on the services you want covered. While ACA marketplace plans have set prices you have to choose from, when you talk to a broker, they can find you different private plans that fit your budget and could potentially help you save.
• Healthcare coverage: Speaking of covered services, if you have preferred doctors or healthcare providers, a private plan can help ensure you’re still able to see them and get health insurance coverage for your services. ACA marketplace plans and public health insurance plans may restrict the doctors that are in your network. On some plans, you may have to pay out-of-pocket for who you want to see. A private plan can be more customized to your preferences.
• Personalized customer service: Another major benefit of working with a private health insurance broker for family insurance is that you have a dedicated account specialist who’s available to quickly help you with questions. With other plans, you’d likely have to call a generic 1-800 customer service number and be routed and placed on hold to speak to an actual representative. With a broker like those at AZ Health Insurance Brokers, we’re always here for our clients. You’ll be able to have the same representative over time, who becomes a trusted advisor for your family’s health insurance needs.

In terms of cost, coverage and customer support, many of our clients prefer a private family health insurance plan because these factors are often better compared to federal or even work-sponsored plans. For most families, health and wellness are one of the biggest priorities. Having a dedicated insurance broker to help you navigate your health insurance coverage can help protect your family.

How to Select a Private Family Health Insurance Plan

When you’re comparing private health insurance plans for a family, consider a few important factors.

• Healthcare coverage: Think about the providers you want to continue seeing. If you don’t have strong preferences, you could save with a more general private family health insurance plan. If you do have strong preferences, you’ll want to find a plan that offers health insurance coverage for those providers. Also, consider any prescriptions and current/upcoming health issues that could influence the coverage you need. For example, if someone in your family regularly takes medication, or someone needs an upcoming surgery, that may factor into your choice.
• Budget: To ensure your healthcare coverage doesn’t lapse, think about how much you can budget for healthcare coverage. You should also check to see if your income qualifies you for discounts through a marketplace plan. If not, consider if there are ways to save money in your overall budget to add more to your health insurance budget. A healthier family, that uses proactive preventive measures like regular checkups, can save you more money long-term in health expenses. By making regular healthcare a priority, including in your budget, you can protect your finances in the future.
• Company reputation: A health insurer’s reputation could impact the quality of service you receive. Some things to consider are: average plan increases year-over-year; customer service quality and response time; and service provider stability. When you’re comparing your options, inquire about factors like these if they’re important to you.

Once you have a plan or plans you’re interested in, you can talk to the plan administrator to get signed up. This might be your human resources representative at work or a private family health insurance broker. If you’re signing up on the ACA marketplace, you can sign up online during open enrollment.

Research Private Family Health Insurance Plans 

Every day a family lacks health insurance coverage, they’re at risk of debilitating financial losses due to emergency services and accidents. If someone develops a high-cost disease, such as cancer, without health insurance coverage, that can also lead to serious financial outcomes.

Don’t risk this for your family. Compare private family health insurance coverage now, so you can get coverage that fits your budget and protects your family. 

At AZ Health Insurance Brokers, we’re here to help. Contact us by filling out the form online, call 602.617.4107 or email us at quotes@azhealthinsurance.com. We’ll be in touch to show you your options, so you can be confident in selecting the right health insurance plan for your family. 

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