Many people stay in a job they hate because it has good health insurance. While they may dream of starting their own business, they worry because the cost of private health insurance is dramatically high and their new income would be lower until the company began to make a profit. Private health insurance cost can be reduced by shopping smart.

If you're leaving an employer, you have the immediate option of COBRA. This is often quite salty in price. The reason is because you now pay the entire premium for your insurance policy instead of simply a portion of the premium with your employer picking up the balance. If you're healthy but have no permanent coverage elsewhere, you have two options. The first is to sign up for COBRA and shop for a cheaper health insurance. The second is to use short-term health insurance to cover you and your family until you secure permanent coverage.

Short-term health insurance is a form of private health insurance that is for times you're between jobs, waiting for a permanent policy, fell off a parent policy due to age or retired early too young for Medicare. The cost is far less than COBRA because it's only intended to cover you for a short period. You can of course, renew the coverage. The amount of depends on the policy. Each time, in most cases, you must be in the same health.

Look for a plan that fits your family needs when you shop for insurance. There are two basic types of private health insurance. The first is the traditional or indemnity policy and the second is the managed care policy. Within these two categories, you'll find several different types of plans.

Indemnity policies include high and low deductible plans. Some people, particularly those with few medical bills, find that the use of a high deductible insurance plan is a true cost savings. However, they worry about the day when they won't have the same level of good health. For this reason, these people often combine the plan with a Health Savings Account. These accounts grow tax free if you use the money for medical purposes. Those purposes can extend to dental or eyeglasses besides just a doctor or hospital visit. You also can pay for alternative medical treatments; something most insurance plans won't cover. If you don't use the money in the savings account, you keep it and simply add to it every year.

The second type of private health plan is the managed care plan. Managed care plans come in three styles. The first on the market was the HMO. This type of plan is the most restrictive. You have to use the services of the health care providers offered by the plan. If your doctor isn't on the list, they won't pay his bill. PPOs and POS policies are far more liberal private health insurance plans. These plans pay for outside health care providers but often with higher co-pays and out of pocket expense.

Managed care plans are often less expensive than the lower deductible traditional plans. No matter which type of private health insurance you select, make certain you shop. Not all insurance companies charge the same price for the same coverage. By getting a number of quotes, you'll find the best bargain for private health insurance.