Direct Insurance or Group Health Insurance
Direct insurance or direct purchase is a type of individual health insurance vs a type of employer or government insurance plan. Individual health insurance is purchased by an individual from some private insurance company, vs received from ones employer or a government program.
Individual health insurance is usually purchased by the self employed, or someone who works part time and is not covered by employer benefits. Sometimes someone who retires before they are eligible for medicare purchases direct insurance.
When purchased through ones employer or union, health insurance plans are referred to as a private health insurance or group health insurance. These group health insurance plans can either be an HMO, a POS or a PPO. Ask your health insurance broker which plan you are covered under.
A government plan is not a direct purchase plan because it is not purchased through a private insurance company. Government health insurance plans are medicare, medicaid or military.
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