Private health insurance (sometimes also called commercial health insurance) refers to health coverage that individuals or families buy from a commercial health insurance company or through the Affordable Care Act marketplaces. Families and individuals also can get such coverage from an employer that is either self-insured (meaning the employer sets funds aside to pay all claims) or is fully insured (meaning the employer buys health coverage for workers and family members from a health insurance company). Private or commercial health insurance is different from health insurance from a government agency, such as Medicare, a state Medicaid program, the Veterans’ Administration or other government health insurance program.
