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What Is Private Health Insurance? A Plain-English Guide for Michigan (2027)
"Private health insurance" is a confusing phrase because it's used three different ways. In the broadest sense, it's any coverage sold by a private company instead of the government. That includes plans you may already have or have seen on the marketplace.
Three things people mean by "private"
| What it is | Who sells it | Health questions? |
|---|---|---|
| Employer plan | Private insurers through your employer | No |
| Marketplace (ACA) plan | Private insurers, sold on HealthCare.gov | No |
| Private plan outside the marketplace | Private insurers and associations, often with a leased PPO network | Usually yes |
The last category is what people usually mean when they say "private health insurance instead of Obamacare." Here's the difference.
Private plans outside the marketplace
Outside the marketplace, private shared-network plans are sold in Michigan on leased PPO networks (Cigna, Aetna and PHCS PPO). They're medically underwritten, so they ask health questions and price on age and health instead of income, but you can enroll any month and coverage starts on the 1st. They're not ACA plans, so they don't have to cover every ACA essential benefit, they can ask about your health history, and they don't qualify for a premium tax credit. For healthy people above the subsidy line they can be cheaper, and the PPO networks are often broad.
Marketplace plans
Marketplace plans are also sold by private companies, but they follow ACA rules: no health questions, ten essential benefits, and an out-of-pocket maximum. The big advantage is the tax credit, which can make them much cheaper for people with incomes from 100% to 400% of the poverty level ($15,960 to $63,840 for one person).
Which should you look at?
- Income under 400% of poverty, or health conditions: start with the marketplace.
- Income above the line and in good health: price both. See private health insurance vs. ACA.
- 65 or older: Medicare is also a private-company product in the case of Medicare Advantage and Medigap. See how to find a Medicare agent.
In Michigan, open enrollment for 2027 coverage runs on HealthCare.gov from November 1, 2026 to January 15, 2027. Pick a plan by December 15, 2026 if you want coverage to start January 1, 2027; plans picked after that start later.
Check your options and we'll compare both for your age, health and income.
Frequently asked questions
What's the difference between private health insurance and Obamacare?
Obamacare (ACA) plans are also sold by private companies but must follow ACA rules and can get tax credits. Private plans outside the marketplace price on age and health, can ask health questions, and don't get tax credits.
Can I buy private health insurance any time?
Marketplace plans need open enrollment or a life event. Private plans outside the marketplace can usually be started in any month.
Is private health insurance cheaper?
Sometimes, mostly for healthy people who don't qualify for a tax credit. For lower incomes, a subsidized marketplace plan is often cheaper.