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Who are the best private health insurance companies in Texas?

As a Texas resident, one of your most important objectives when deciding on a private health insurance company is to find one that offers the best possible service and quality at a cost that fits within your budget. The best private health insurance companies in Texas are those that have been able to keep their overhead costs as low as possible while still being able to offer their policyholders the best possible service and quality of care.

Private health insurance companies are the largest source of health insurance in the United States. They provide health insurance to people who don’t qualify for government programs like Medicare or Medicaid. They are also the only source of health insurance for nearly half of all U.S. employees. Over the years, private health insurance companies have evolved into one of the world’s most profitable industries. So, today we’re going to discuss the best private health insurance companies in Texas and why you should consider them when searching for health insurance.

How Much Does Health Insurance Cost in Texas?

Determining the cost of health insurance in Texas will vary based on many factors that affect premiums. With that being said, the average cost of health insurance per year for a family of four was around $20,500 in 2019. Of these costs, just over 70% were paid by employers, with the remaining balance covered by the employee. The average portion a family was responsible for paying was around $6,000. 

For this reason, comparison shopping is vital, as you may find private health insurance to be more affordable than that offered by your employer. Yet, keep in mind that some things will affect your monthly premium. 

Factors that affect the cost of health insurance in Texas

When you pay for health insurance coverage each month, there are several things that play a direct role in the amount you pay. These include but may not be limited to: 

  • Federal and State Laws: Regardless if you’re buying an employer-provided or individual plan, there are laws on premiums and mandatory coverage. 
  • Personal Income: Subsidies are available for low-earning employees through the health exchange. 
  • The size of your employer: The larger your employer, the less expensive health insurance will be through your job. 
  • Where you live: Health insurance premiums vary based on where you live and how healthy the population is in your area.
  • Your Age: As you age, premiums become more expensive. 
  • The Type of Plan: Platinum plans are usually the most expensive, while PPOs are the most affordable. 
  • Tobacco: If you smoke, you can expect to pay up to 50% more for health coverage. 

What Types of Plans are Offered in Texas?

When shopping for private health insurance companies in Texas, several options are available. These options include: 

Preferred Provider Organization

Preferred Provider Organization Plans, or PPOs, are health insurance policies that are similar to HMOs in that they operate around a predefined network of doctors and hospitals. 

Though you’ll save money by seeing health providers inside the network, you can also see doctors who are not in the network, but the out-of-pocket costs will be higher. Another benefit of a PPO is that you do not need a referral from a primary care physician to see a specialist. The downside is that some pay more out-of-pocket costs that the insurance company later reimburses. 

Health Maintenance Organization

Health Maintenance Organizations, or HMOs, are similar to PPOs because they have a predefined network of health care providers who agree to accept specific rates. The goal of this plan is to simplify and streamline medical costs. 

HMOs tend to be the cheapest health plans, and they provide a wide array of coverage options. When you enroll in an HMO, the first thing you do is choose a primary care doctor. This person will be your point of contact if you need to see a specialist. 

Point of Service Plan

A POS plan combines elements from both PPOs and HMOs. These plans require you to choose a primary care doctor, and all specialist referrals are handled through that person. It’s important to note that while a POS plan allows you to select doctors who are not in the network, there are more out-of-pocket expenses associated with this choice. 

POS policies purchased through Texas health insurance companies typically have no deductible, and all copays are less than $20. And the best news is that a POS premium is usually about half what it would be for a PPO. 

But few systems are perfect, and the drawback is that when you visit a provider who is outside of your network, you have to pay for the services upfront. You will then submit paperwork to your insurance carrier, and they will either reimburse you or deny your claim. 

Who are the Best Private Health Insurance Companies in Texas?

Now that we’ve discussed what you need to know about available options for health insurance in Texas, let’s look at the best private health insurance companies: 

  • Aetna
  • Blue Cross and Blue Shield of Texas
  • Celtic Insurance Company
  • Cigna Health and Life Insurance Company
  • Community Health Choice Inc.
  • Friday Health Insurance Co. Inc
  • Humana Insurance Company
  • MCNA Insurance Company
  • Molina Healthcare of Texas Inc.
  • Oscar Insurance Company
  • Sendero Health Plans Inc.
  • Superior Healthplan Network
  • United Healthcare Insurance Company

The Bottom Line

When shopping for private health insurance in Texas, it’s essential to do your research. In addition to comparing the cost and coverage of the different plans available, it’s also important to understand the different types of plans. Choosing the wrong health insurance plan could end up costing you more money in the long run. But if you’re ready to shop for the best health insurance company for you, begin by looking into the companies listed above. 

Ultimately, the best private health insurance companies in Texas will depend on your specific needs and goals. The best way to find the right fit is to talk to a professional who can help you evaluate your current health insurance situation, diagnose your health concerns, and recommend the best plan for you. They can also help you understand the pros and cons of each plan so that you can make an educated decision.