Average Health Insurance Cost: Everything You Need to Know
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No matter your current health status, having reliable healthcare insurance is crucial. Depending on the plan you choose, it can cover a significant portion of medical expenses. Today, a wide range of companies offer health insurance with various coverage tiers, so you can find an option that best suits your needs.
And what about the prices of health insurance plans? Keep reading to learn about average health insurance cost, what factors affect it, and how it is calculated.
What is the Average Health Insurance Cost Per Month?
Under the Affordable Care Act (ACA), plans are divided into tiers—Bronze, Silver, Gold, and Platinum. If we take a 40-year-old individual as an example for average insurance costs in 2024, the average monthly premiums are as follows:
- Bronze: $465;
- Silver: $565;
- Gold: $606;
- Platinum: $1,035.
Keep in mind that these amounts cover only premiums, without additional fees.
Average Costs by Age
Regardless of which company you choose, age significantly impacts health insurance premiums on the ACA marketplace. Younger individuals typically pay less due to lower expected health costs. Here’s the average monthly cost by age:
Age | Average Price of Health Insurance per Month |
|---|---|
21 | $425 |
27 | $446 |
30 | $483 |
40 | $544 |
50 | $760 |
60 | $1,154 |
Average Cost of Health Insurance by Company
And what is the average cost of health insurance by a provider? The prices vary, so it’s worth comparing rates before the purchase and finding affordable options. For example, a 30-year-old may pay about $73 less with Kaiser Permanente compared to an equivalent one from Blue Cross Blue Shield.
Here are the monthly health insurance rates offered by well-known companies:
Age | Kaiser Permanente | Aetna | UnitedHealthcare | Blue Cross Blue Shield |
|---|---|---|---|---|
21 | $382 | $396 | $434 | $445 |
27 | $400 | $419 | $454 | $467 |
30 | $433 | $452 | $492 | $506 |
40 | $488 | $508 | $554 | $569 |
50 | $682 | $711 | $775 | $796 |
60 | $1,036 | $1,078 | $1,777 | $1,209 |
Average Cost of Health Insurance by Plan Type
The type of health plan also impacts your costs. Generally, the Health Maintenance Organization (HMO) plans are generally the most affordable variant, while Preferred Provider Organization (PPO) plans tend to be pricier.
Age | HMO | Point of Service (POS) | Exclusive Provider Organization (EPO) | PRO |
|---|---|---|---|---|
21 | $403 | $432 | $433 | $478 |
27 | $423 | $453 | $455 | $501 |
30 | $458 | $490 | $492 | $542 |
40 | $515 | $552 | $554 | $610 |
50 | $720 | $772 | $774 | $853 |
60 | $1,094 | $1,173 | $1,176 | $1,296 |
Average Cost of Health Insurance by Metal Tier
The four ACA metal tiers—Bronze, Silver, Gold, and Platinum—come with different price points, and you can choose from the most expensive to the least. Keep in mind that lower-cost plans have lower premiums but require you to pay more out of pocket whenever you need medical care.
Here are prices for metal tiers based on the individual’s age:
Age | Bronze | Silver | Gold | Platinum |
|---|---|---|---|---|
21 | $364 | $442 | $474 | $810 |
27 | $381 | $464 | $497 | $848 |
30 | $413 | $502 | $538 | $919 |
40 | $465 | $565 | $606 | $1,035 |
50 | $650 | $790 | $847 | $1,446 |
60 | $987 | $1,199 | $1,286 | $2,197 |
Average Cost by Family Size
Family size also influences the average health insurance cost per month. The cost varies depending on whether a family consists of a single parent or a couple, and also on the number of children. Here’s a look at average monthly premiums by family type (calculated for 30-year-olds):
Family Type | Average Monthly Cost |
|---|---|
Single, with one child | $811 |
Single, with two children | $1,135 |
Couple | $966 |
Couple, with one child | $1,298 |
Couple, with two children | $1,622 |
Couple, with three or more children | $1,947 |
Key Factors Affecting Health Insurance Price
Several factors affect health insurance premiums that you qualify for, and here are the main ones:
Age
One of the biggest factors influencing health insurance costs is age. Younger individuals, especially those under the age of 27, benefit from the lowest premiums. In most companies, you’ll notice that premiums tend to double around age 53 and then triple around age 64 and above.
Metal Tier
As mentioned above, the four ACA metal tiers—Bronze, Silver, Gold, and Platinum—each differ in cost. Depending on financial needs, an individual can choose the plan that best suits them. Higher-cost plans mean higher premiums, but lower deductibles.
Tobacco Use
Smoking is another major factor that can drive up health insurance costs. Regular smokers often face significantly higher premiums—sometimes even up to 50% more—compared to non-smokers.
Location
Health insurance premiums can vary based on your state or county. In areas with fewer insurance options, plans typically cost more due to limited competition.
Family Size
The more people added to a health insurance plan, the higher the health insurance price. For example, adding a spouse or three or more children will naturally increase your monthly premium to reflect the added coverage.
Income
Household income may qualify you for a cost-sharing subsidy, which can lower both monthly premiums and out-of-pocket expenses.
How to Calculate Monthly Health Insurance Cost
While premiums are the main amount paid each month to the health insurance company, there are additional charges to consider when calculating actual monthly costs. To calculate the actual health insurance price, you need to be aware of some common fees.
Deductible
A deductible is the annual amount that you pay out of your pocket before your plan’s benefits activate. For instance, if your annual deductible is $5,000 and your medical bill is $8,000, you’ll pay the first $5,000, and your insurance covers the remaining $3,000.
Coinsurance
Coinsurance is an extra charge that may be applied after your deductible is paid out. For instance, if your coinsurance rate is 15% and there’s a remaining bill of $2,000, it means you would pay $300 as coinsurance.
Copay
A copay is a fixed amount paid when you visit a healthcare provider. Usually, this amount varies depending on your plan and the type of visit. For instance, a copay for an emergency room visit may be $250, while a primary care visit could be $30.
