There are three ways to get health insurance:
- An individual plan, where you pay the premium yourself.
- An employer-sponsored plan, where the employer pays all or a large chunk of the premium, and possibly for family members.
- Government programs such as Medicare for seniors and Medicaid for low-income individuals.
The main difference is who pays the premium: the government, employer, or individual. With an individual plan, you have the most choice in terms of coverage, but you pay out of pocket and may not be able to deduct the premium from your taxes. With employer plans, the insurance company takes the average risk of all employees and everyone pays the same premium, but the coverage options may be more limited. Government plans typically have the lowest deductibles and in some cases no deductibles.