Introduction

What is the Average Health Insurance Premium? Health insurance premiums in the ACA marketplace vary widely depending on several factors, including the insurance provider, the policyholder's geographic location, the coverage level desired, the number of individuals to be insured, the policyholder's age, smoking status, household size, and income. Approximately how much does one have to pay for health coverage? Medical insurance premiums paid by Americans each month vary widely across the country.

While the Affordable Care Act ensures that gender and pre-existing conditions no longer play a role in determining premiums, many other factors can significantly affect your monthly outlay. In the following sections, we'll discuss these elements in greater depth so that you can better anticipate and comprehend your health insurance premiums. Premiums for an Affordable Care Act bronze plan average $928 per month. Silver plans cost an average of $1,217 per month, and gold plans cost an average of $1,336 per month. Those medians don't account for premium tax credits and subsidies that can lower costs for an ACA plan based on a family's income.

Healthcare Costs Based on Age and State

Medical expenses change from state to state and with age. Expectedly, younger, healthier adults pay the cheapest health insurance premiums, but even this age group experiences regional variations in premium rates. Insurance premiums in the United States are expected to average $541 per month in 2021. This equates to an average annual cost of $5,940. The price can vary widely from one area to another. The typical premium in West Virginia is $831, and the specific deductible is $8,540. In neighboring Maryland, however, the customary tip is only $344, and the standard deductible is $4,122. Health insurance premiums also tend to rise with a person's age.

Employee Health Insurance Premiums

According to the Kaiser Family Foundation's 2020 Employer Health Benefits Survey, the cost of health insurance at a large company could rival that of a brand-new vehicle. In 2020, Kaiser estimated that family premiums would average $21,342. Which was very close to the MSRP of a base 2022 Honda Civic, which was $22,715. The average employee contribution was $5,588 annually, while employers paid $73,248. In 2020, the average premium for a single worker was $7,470. Employees contributed $1,243, or 17%. Kaiser calculated the average premiums for various medical plans, including HMOs, PPOs, point-of-service plans, and high-deductible health plans with savings options. The study found PPOs to be the most popular option, insuring 47% of all workers. HDHPs or SOs covered a third of all insured workers.

Factors That Influence Health Insurance Costs

Health insurance premiums can be based on several factors under the ACA. Here are some of the factors that affect prices on the ACA exchanges.

Your Age

In contrast to the health insurance market for employees, insurance companies in the ACA marketplace take age into account when determining premiums. Here we look at how one's age affects the price of their health insurance.

Where You Live

Insurance premiums tend to vary depending on where you live. States with fewer health insurance plans on the marketplace may see higher premiums from participating insurers due to the increased administrative costs associated with serving a smaller pool of customers. Health insurance choices in rural areas may be more limited than in more populated areas, potentially increasing out-of-pocket costs for residents there compared to their urban and suburban counterparts.

Whether You Smoke

Insurance companies will charge tobacco users a higher premium thanks to the Affordable Care Act. Smokers can expect to pay as much as 50% more for their health insurance than nonsmokers.

Tier Metal

Affordable Care Act marketplace metal tiers let customers make cost-effective plan selections. There is a Bronze, Silver, Gold,, and Platinum tier. Most ACA health plans are either Bronze or Silver, with lower premiums and larger deductibles. In contrast to bronze and silver policies, gold plans feature higher premiums but lower deductibles and copayments. Only a tiny percentage of ACA plans are platinum level, with higher premiums and lower deductibles. When deciding which metal level to enroll in, consider whether you'd rather have more outstanding monthly payments or more considerable out-of-pocket expenses.

Conclusion

Some people purchase their health insurance, while others rely on employer- or union-provided group plans. Even if you add your spouse and children to your health insurance plan, you still purchase an "individual" plan. If this is what you're looking for, use eHealth's free quote comparison tool to explore your individual and family health insurance options and pick one that fits your budget. It's good to know there's a cap on how much you'll have to pay. An annual maximum expenditure of this sum is required for covered services. The insurance company will pay for any further covered services when this threshold is reached during a benefit year. The sum of your annual deductible, copayments, and coinsurance contribute to this cap.