Average Cost of Health Insurance

28.12.2021
Stefan

While no one likes to think about getting injured or sick, it’s part of life. This makes health insurance an absolute necessity, especially in the US where the costs of healthcare can soar to exuberant levels. Navigating through the market of providers meanwhile can prove to be more difficult than it needs to be. Fortunately, we have gathered all the info you need to know about the average cost of health insurance in one single article, so, read on.

Average Cost of Health Insurance

  • The average monthly health insurance for a single person across the US is $452.
  • A comprehensive global insurance package that includes coverage in the United States is $8,000. 
  • Non-subsidized plans offer a cost of $1,437 for health insurance for a family of four.
  • In California, the average cost of a premium is $487.
  • The mean cost of private insurance in the UK is £1,435 (or roughly $1,785) per year.

The Average Cost of Health Insurance per Month

In 2020, the average monthly health insurance for a single person recorded was $452. Given that Americans across the country pay different prices for their monthly premiums, pinpointing a single number as the cost of health insurance per month might not be close to what you are actually going to pay. Also, depending on factors outside of your control, such as your gender or any pre-existing health conditions, more discrepancies may arise. Your employment status also plays an important role. 

(QuoteWizard)

The Average Annual Cost of Health Insurance

Given the previous information, we can deduct the cost for a full year of insurance. Therefore, if the monthly price is $452, then expect to pay $5,424 for one year. In 2019, the average annual premiums were $7,188 for single coverage and $20,576 for family coverage. Compared to 2018, the prices increased by 4% for singles and 5% for families. Since 2009, the average cost of family premiums has grown by 54%.

The calculations for the average cost of health insurance per year are different for employer-provided premiums. As such, the median price of premiums for family coverage for workers in small firms is $29,236, which is very close to the price big organizations pay ($20,717). These numbers are also very similar all across America’s regions, although there are big differences from one industry to another. Covered workers from HDHP/Sos pay lower ($6,412 for singles and $18,980 for families).

Companies where over 35% of workers earn less than $25,000 also pay lower average costs of insurance yearly for their employees.

(KFF)

Average Cost of Catastrophic Health Insurance

To qualify for a major medical catastrophic health plan, the recipient must tick the following boxes: be under 30, and not use any subsidies to purchase the plan. Moreover, the plan protects the person from any uninsured tax penalties, if you maintain the coverage through the whole year. These packages also cover at least three primary care visits. The median cost of catastrophic health insurance is $173 while the average deductible is $7,148.

(eHealthInsurance)

Average Cost of International Health Insurance

Those planning to stay overseas for extended periods may find international health insurance to be a good investment that helps them sleep at ease at night.

To get insurance that is valid internationally you can pay as high as $5,000. Fortunately, those looking for a cheaper alternative may get one for as low as $500, although the benefits will be highly limited. A comprehensive global package, however, is much more expensive, standing at around $8,000. The price for this is high as it also includes coverage stateside.

(InternationalInsurance)

Average Cost of College Student Health Insurance

Fortunately, students with low incomes may benefit from Medicaid. Those who do not qualify for the program can try getting financial aid for their insurance by enrolling in their school-provided plan. On average, a student health plan costs between $1,500 and $2,500 per year.

Thanks to the Affordable Care Act, students can stay on their parent’s plan until they reach the age of 26, even if they do not file as dependent.

(BestColleges)

Costs for Health Insurance Based on Your Familial Status

Average Cost of Health Insurance for One Person

It should be no surprise that prices depend on the provider you purchase the service from and other factors such as pre-existing conditions, gender, and location (although the latter is not a heavy factor). Given all this, rough estimates show that the average price for health insurance all across the country, considering all other criteria, was $456 monthly in 2020 for a single person.

An aspect to keep in mind when going over the costs is the deductibles, which represent the amount you pay each year for health care before your insurer contributes his portion. For one person, the average cost of individual health insurance deductibles was $4,364 in 2020.

Other details to consider for your cost of individual health insurance are the copayments and coinsurance. These are cost-sharing payments you make each time after you get a medical service if you have met your annual deductible. Copayments are fixed amounts while coinsurance is a percentage of the price of the services you need, after the deductible. 

There is also a maximum out-of-pocket spending limit per year. In 2020, this limit for singles was set at $8,150.

(QuoteWizard, eHealthInsurance)

Average Cost of Health Insurance for a Single Male

eHealth data shows that in 2020, the average male paid $438 per month for his health coverage, without any subsidy. Their research is based on those who purchased their insurance through the marketplace.

Premiums sponsored by an employer are, of course, cheaper. Covered workers, therefore, get to pay 17% less than those who get it by themselves. Considering these percentages, workers pay $101 for HMO plans and $111.25 for PPO plans.

Of course, depending on the state you are in you pay more or less. For example, Hawaiian employers spend an average of $718 for their workers while those from Massachusetts pay $1,793 per year.

(The Balance)

Average Cost of Health Insurance for a Single Female

Because women tend to visit the doctor’s office more, women buying insurance on the individual market get charged more than men. Before the Affordable Care Act, it was not uncommon for a female to spend up to 50% more than males. Sometimes, the gap was as high as 81%.

Although since the ACA the differences have narrowed, insurers still practice what is known as “gender rating”. The factors that prompt insurance companies to mark women as a higher risk than men are the fact that they have babies and generally live longer.

(HealthLine)

Average Cost of Family Health Insurance

The factors that we will explore in the following segments that influence the cost of family health insurance are the size of your household, your location, and the level of coverage. Even as such, the all-around average for all the families across the United States recorded in 2020 was $1,152, according to a recent study conducted by eHealth Insurance. Their statistics also show that the average deductible in the same year was approximately $8,439. 

(eHealthInsurance)

Average Cost of Health Insurance per Month for a Married Couple

What you would expect is that once you get married, your joint healthcare costs should just double. Unfortunately, in most cases, the price jumps up even more, especially if you are not under your employer’s plan. Of course, any children in the picture will skew the costs even more, but this is a subject we will go into more in-depth in the next segments.

To get back to our calculations for the average cost of health insurance for a family of 2, if you have an HMO plan, you’ll pay an average of $441, while if you have a PPO the costs rise to approximately $501. Those who have a point of service or a high-deductible health plan spend around $518 and $466, respectively. It’s good to know that employers do sometimes pay the full amount, even though employees need to foot part of the bill in most cases. To get the full information on what you will need to spend, we encourage you to speak with your HR representatives.

(Livelyme)

Average Cost of Health Insurance for a Family of 3

Your family’s size doesn’t impact what you pay on prescription or doctor visits necessarily. The factor that impacts your costs the most is, of course, the existence of any conditions, especially chronic diseases. Therefore, a healthy family of six may get to pay less than a married couple who are suffering from chronic conditions. Even as such, adding a child to your plan will always increase your payment. Adding your child to your insurance will bring additions in the range of at least $9 and up to $60 per month to your cost of health insurance for a family of 3.

(CommunityHealthAdvocates)

Average Cost of Health Insurance for a Family of 4

For non-subsidized plans, the cost of health insurance for a family of 4 is typically $1,437. Of course, plan selection affects monthly premiums. To qualify for a subsidy, the income you make in the next year must be between 100% and 400% of the federal poverty level in that given year.

Although employer-sponsored premiums are more popular, approximately 13 percent of all Americans rely on individual coverage, a lot of those being self-employed. Unfortunately, the price of this service is more expensive for freelancers, which is something all households must take into account when going over the cost of health insurance for a family of 4 self employed.  

(eHealthInsurance)

Average Health Insurance Prices for Senior Citizens

Average Cost of Health Insurance for 60-Year-Old People

At 60, the typical American pays $536 for his premium. The price for those that have reached 64 years old jumps to $600 which is approximately three times higher than what 21-year-olds pay. The growth in costs begins to appear when a person reaches 50. At 53, the average premium is higher than the base rate by two times and at 55, the average coverage costs $446.

(TheStreet)

Average Cost of Supplemental Health Insurance

Medicare Supplement plans, or Medigap, have been created to fill the gaps for people who are not covered by the initial Medicare benefits. Depending on the plan chosen, you may get different benefits and have to provide a different payment amount. Unfortunately, these also do not provide dental, vision, or any other supplemental insurance benefits.

A senior dental plan starts at $15.25 per month and goes up to $35.5. Vision packages for seniors fit in the range of $10 to $18 while those who include dental, vision, and hearing are typically priced at $21 per month.

(HealthCareMarkets)

Average Cost of Health Insurance for Retired People

For most citizens of the US, premiums are the biggest expense in retirement. According to the study Fidelity Retiree Health Care Cost Estimate, the typical American retired couple aged 65 in 2021 needs around $300,000 saved after tax to pay for their health care expenses after their exit from the work field.

However, this is only a rough estimate, which can be easily skewed by other factors such as when and where you retire, your health status, and the length of the time you will live. Another important aspect is the savings account you have (401k, HSA, IRA).

The average cost of health insurance for retirees is something the majority of Americans are having to face because the typical age people chose to exit the work field is 62, which is three years before they are eligible for Medicare. A good tip to put into practice for reducing the cost of health insurance is enrolling in your employer’s HSA (if offered) even before you retire. This is a tax-efficient way of planning for the day you will stop working as you save a lot on pretax dollars.

(Fidelity)

According to HealthView, the average monthly cost of health insurance for a retired couple stood at $583, but once you reach 85 this sum should at least double. It’s no surprise that a recent survey conducted by Nationwide revealed that over 50% of people claim they are terrified of the uncertainty they will have to face regarding their coverage while in retirement. Another unfortunate fact is that Medicare doesn’t cover everything. Some expenses such as long-term care and dental or vision insurance must get paid out-of-pocket.

Calculating the average cost of supplemental health insurance for seniors is another important step to go through. The price will depend on what type of plan you are looking for, be it either actual supplemental health insurance or a Medicaid Supplement plan. Of course, prices vary between what company you choose and where you reside in the United States.

As a general reference, in Florida, the monthly cost of health insurance range for individual Medigap plans in 2020 starts at $51 and doesn’t get higher than $250.

(HealthCareMarkets)

Cost of Health Insurance by State

The dramatic rise in health insurance costs over the past decade is something that has effects all over the country. Fortunately, it’s not all bad news, as this is a more or less necessary consequence of providing coverage to those who are less fortunate and couldn’t get health insurance for themselves before the Affordable Care Act.

We should also note that although generally, prices have been growing year on year, from 2020 to 2021 they have actually decreased by 2%, which may or may not be an indicator of a future trend. Your location will be one of the factors which determine if this is the case the most. In the next segments, we will explore the costs of coverage in several states.

(ValuePenguin)

Average Cost of Health Insurance in California

In the Bear Flag State, every resident is required by law to have health coverage, or they will incur the individual mandate penalty. Californians may purchase plans either through private providers or via the federal exchange. One option for those who didn’t qualify for special enrollment but still require insurance may get a short-term plan.

The average cost of a premium in California is $487 per person, although obvious differences will occur from case to case. Depending on the level of the insurance, the median prices are $486 for Bronze, $557 for Silver, $715 for Gold, $942 for Platinum.

(eHealthInsurance)

Average Cost of Health Insurance in Michigan

If you live in the Wolverine State you must know that sign-ups start, generally, in November and end in December. There are 11 insurers on the Michigan marketplace that you may choose from. It’s also good to know that this state provides some of the lowest-priced Obamacare premiums.

In 2020, the average low-cost Bronze health insurance registered in Michigan was $251, slightly lower than the 2019 price of $255. At the other end of the spectrum, the average low-cost Gold premium cost $400 in 2019 and $382 in 2020.

(HealthCareInsider)

Average Cost of Health Insurance in Ohio

Only 6% of the population of the Buckeye State is uninsured, out of a total of 11,468,700 residents. There are 3,403,537 HMO enrolled persons here and the average employee premium paid after the employer contribution is $1,351. If you need one day of hospitalization in Ohio you must pay approximately $2,608.

The cheapest plan here starts at $161, although the average low-cost Bronze coverage is $179. For Silver, expect to pay about $161 and for Gold, it’s $206.

(eHealthInsurance)

Average Cost of Health Insurance in Florida

Out of a population of around 20 million residents, as many as 12% are uninsured in Florida. Hospitalization meanwhile costs $2,087 per day on average. The Sunshine State is leading for people enrolled in the Affordable Care Act program, with more than 1.6 million citizens participating in it.

The cheapest health insurance that we could find here was priced at $177. The mean cost recorded in this state is $467, for major medical individual plans. The average paid for Gold packages was $667.

(eHealthInsurance)

Average Cost of Health Insurance in Texas

The Lone Star State is another example with a relatively high uninsured proportion of the population, sitting at 15%. Currently, there are close to 28 million people in Texas. Out of those, 5,322,720 are enrolled in an HMP program. The average annual employer-sponsored premium in Texas after employee contribution is $1,187.

The cost of health insurance in TX is $153 on average, although low-cost Gold plans can get as high as $221. The mean monthly premium here is priced at $510 for Bronze, $547 for Silver, and $680 for Gold.

(eHealthInsurance)

Average Cost of Health Insurance in NY

New Yorkers may get affordable health coverage either through the state marketplace or via Medicaid if their household income is lower than 138% of the federal poverty level. In 2021, prices of health insurance in this state have grown, although just by 1%. Currently, the average health insurance in NY will cost you $701.

Our research shows that the cheapest plan available in The Big Apple was Fidelis Care, Silver. Still, there are a lot of other insurers on New York’s marketplace, offering plans with different characteristics which may suit you better.

(ValuePenguin)

Average Cost of Health Insurance in Wisconsin

There currently are close to six million residents in Wisconsin and just 7% of them have no form of health coverage. For an inpatient day before insurance, the average Wisconsinite pays $2,280. Of course, Wisconsin does follow the Affordable Care Act, too, mandating their residents to have health insurance.

The cheapest plan in the Badger State starts at $166 but you may also get low-cost Gold packages at around $229. However, the average paid in this state is $486 per person for a basic major medical individual health insurance plan. Costs dramatically depend on your health.

(eHealthInsurance)

Average Cost of Health Insurance in Massachusetts

6,779,600 people live in Massachusetts, according to the latest data, and just 6% are uninsured. Around two million residents are enrolled in an HMO program and the average annual employer-sponsored premium in this state after the employer contribution is $1,670.

A pioneer state, Massachusetts, has required its residents to have health insurance since 2006. Failure to do so can result in a state penalty. The cheapest plans in this state start for as low as $149 per person. The average coverage in this state is priced at $564. The average cost of health insurance in MA for a low-priced Bronze plan is $149. For cheap Silver packages, people pay approximately $191, while for Gold the price tag is $266. Those looking for cheap Platinum coverage here should expect to pay around $330.

In 71% of the states’ counties, the cheapest plan is BMC HealthNet Plan Silver A II. Those looking to lower their cost of health insurance in MA as much as possible may look to purchase cheap coverage through the state’s online exchange.

(eHealthInsurance)

Average Cost of Health Insurance in North Carolina

Mandated by the Affordable Care Act, all residents of this state must have a form of health coverage. However, the state doesn’t require employers to offer group plans to their workers. Even as such, the majority of companies from North Carolina do provide this benefit. Still, the minority of employees from this state that don’t have this opportunity can enroll on their own plan via the federal exchange.

The average health insurance plan in The Old North State is $482, although it may vary depending on the type chosen. Therefore, the average for Silver coverage is $610 while for Gold, it’s $765.

(eHealthInsurance)

Average Cost of Health Insurance Washington State

In Washington State, the average health insurance will cost you $420 per person for a basic major medical individual health insurance plan. For Silver coverage, expect to pay $531 and $658 for Gold. The cheapest that you may get coverage in the Evergreen State is $166.

In total, 7,297,300 people are currently living in Washington State and only 7% of them do not have any form of health insurance. The mean cost of an inpatient day before insurance here costs $3,248. You can apply for enrollment from November 1st each year. 

(eHealthInsurance)

Average Cost of Health Insurance in NJ

The cheapest plan that you can get in the state of New Jersey is $191 but you may also purchase low-cost Silver coverage for $220 or pay $381 for a cheap Gold plan. In New Jersey, all individuals and families are required by state law to maintain a healthcare plan.

The average resident of New Jersey pays $451 for a major medical individual health insurance plan, but if you are in good health you can get it for much cheaper. Silver packages go for $628 and Gold go for about $984.

(eHealthInsurance)

Average Cost of Health Insurance in Illinois

At the moment, 12,607,400 people live in Illinois, according to the latest available data. The total uninsured population in this state stands at 7% percent. Close to 3 million people participate in an HMO enrollment plan. The average hospital cost for an inpatient day before insurance is priced at $2,394. Of course, Illinois also defers to the federal Affordable Care Act, so all residents here must be covered.

In the Land of Lincoln, the average health insurance will set you back $589, but it may get as high as $721 for a Gold package.

(eHealthInsurance)

Average Cost of Health Insurance in CT

Connecticut residents can generally pay an average of $534 per person for a major medical individual health insurance plan. This is only a rough average and those who are in good health spend much less, while those who have chronic diseases will have a much larger bill to foot.

About 6% of the state’s 3.5 million residents do not have coverage, unfortunately. The average annual employer-sponsored premium after the contribution of the employer is $1,498. The cheapest that you can get for insurance is $238.

(eHealthInsurance)

Average Cost of Health Insurance in Kansas

Out of the close to three million people living in Kansas, 8% don’t have any form of health coverage. The total HMO enrollment in this state stands at 501,981, while the average annual employer-sponsored plan after the employer makes their contribution is $1,265. The mean average cost per inpatient day before insurance paid in Kansas is $1,537.

The cheapest plan in the Sunflower State goes to as low as $201, but low-cost Gold packages are priced around $295. However, Kansas residents typically pay about $595 per person for a major medical individual health insurance plan.

(eHealthInsurance)

Average Cost of Health Insurance in Nevada

Almost three million people reside in Nevada and unfortunately, almost 10% of them are not covered by any form of health insurance. A total of 956,830 persons are enrolled in an HMO plan, according to the latest available data while the average employee premium after the employer contribution paid in this state is $1,235.

The mean cost per inpatient day before insurance is $1,887. Residents of the Silver State are mandated by the Affordable Care Act to have health insurance, same as everywhere else in the US. The average cost of a major medical healthcare insurance plan here is $475.

(eHealthInsurance)

Average Cost of Health Insurance in Minnesota

In the North Star state, the typical price of health insurance is $392 per person with possibly lower premiums if you are in good health.

Cheap Bronze packages go for around $159 in this state while Silver low-cost ones are $179. The cheapest Gold coverage that we could find in Minnesota is priced at $215. Here, residents may apply for Medicaid coverage or may try to see if they are eligible for MinnesotaCare, if their income is 200% of the poverty level.

(eHealthInsurance)

Average Cost of Health Insurance in Maryland

Out of the total of 5,923,800 people who reside in this state, according to the latest numbers, 6% of the total population is still uninsured. 1,915,721 persons from Maryland are enrolled in an HMO program. The average hospital cost for an impatient day costs $2,514.

We have found the cheapest health insurance in the state at $133, although those from Maryland may also get a low-cost Platinum package for $238. Even as such, the average resident of this state pays $312.

(eHealthInsurance)

Average Healthcare Cost Abroad

Those looking to get a better perspective on the average cost of health insurance in the US compared to the rest of the world will find what they are looking for in the following segment. It’s important to know that the United States doesn’t have universal healthcare, unlike, let’s say European countries which have lower costs for health coverage, although their residents do pay more in taxes to finance the respective national healthcare systems.

Average Health Insurance Costs in Germany

Germans may pay anywhere from  €80 ($95) to €1,500 ($1,778) per month, depending on their circumstances and the premium they chose. However, this is only if they opt to pay for additional services, as all citizens are covered by the state for anything which qualifies as “medically necessary”.

(Expatrio)

Average Cost of Health Insurance in Spain

The Spanish National Healthcare System has guaranteed universal coverage and free healthcare access to all citizens since 1986. However, those who want to get private insurance must expect to pay somewhere in the range of €50 ($60) to €200 ($237) per month.

(HealthManagement; Internations)

Average Health Insurance Costs in Japan

Japanese citizens, as well as expatriates and foreigners, enjoy 70%-90% of health coverage provided by the state. Private insurances go for about JPY35-40,000 per month ($330 to $370).

(Internations)

Average Cost of Health Insurance in China

This country also has free public healthcare provided by its social insurance plan. The system provides basic coverage for most of the native population and some expats. In general, private coverage is 58% cheaper here than in the United States. The average monthly cost for medical insurance is $9,63.

(PacificPrime)

Average Health Insurance Costs in South Africa

South Africans can get free health services from any state-funded clinic in the country. The prices of private policies vary greatly and can be difficult to pinpoint. The mean cost of private health insurance, however, is about $124 per month.

(InternnationaLiving)

Average Health Insurance Costs in the United Kingdom

Although the average cost of private health insurance in the UK is £1,435 (or roughly $1,785) per year, in this country, all residents are entitled automatically to free public health care through the National Health Service. This includes hospitalization, seeing a physician, and even mental health care. All this is funded primarily through general taxation.

(MoveHub)

Average Cost of Health Insurance in Australia

Australia provides public health access for free or at a low cost through their Medicare program which is funded by tax. For private insurance, Australians pay approximately AUD$166 ($125) per month.

(MoveHub)

Average Health Insurance for Businesses

Average Cost of Employer Health Insurance

Research published recently by the Kaiser Family Foundation revealed that the average employer-sponsored health insurance for annual premiums costs $7,188 for singles and $20,576 for families. Moreover, the annual deductible for single coverage is $1,655.

Research has also shown that although the prices have stabilized somewhat and are not growing rapidly, they still incur small rises. The KFF study shows that in 2019, the average cost of employer-provided health insurance had risen by 4% while the typical family premium cost grew by 5%. The average premium meanwhile has increased 22% in the last five years and 54% in the last 10. 

This type of health coverage is offered by an employer for their workers and retirees. In general, businesses offer a choice of group insurance that provides part of the coverage cost for their workers who qualify.

Still, all things considered, getting insurance through your employer is a better option than obtaining individual coverage, as that would be even costlier.

(eHealthInsurance)

Average Cost of Health Insurance for Small Business

Small companies that do not have more than 50 workers are not required to offer group health insurance, although they still can if they decide to do so. In such cases, business owners must pay for a minimum of 50% of their employee’s premiums. Entrepreneurs can always opt to contribute more than the minimum requirement.

The latest available statistics show that 31% of small businesses pay for their worker’s entire premium and 35% of those are enrolled in a plan in which they pay more than half of the total required contribution.

(eHealthInsurance)

Average Cost of Health Insurance per Employee

In 2019, the average employee contribution to their coverage was $1,242 for singles and $6,015 for families.

(eHealthInsurance)

Average Cost of Health Insurance for Self-Employed People

In 2020, the median payment required for medical coverage for an individual who is self-employed on an ACA benchmark (for example a Silver plan) is $456 per month. Still, those who qualify for a tax subsidy may get it for as low as $199.

(eHealthInsurance)

The Bottom Line

Making plans for the future is as helpful as it is fun. Unfortunately, sometimes things get in the way and incidents can be tough to manage. Now that you have all the info on the average cost of health insurance, you can better prepare ahead so that you can be ready for anything that comes your way.

References: QuoteWizard, KFF, eHealthInsurance, InternationalInsurance, BestColleges, The Balance, HealthLine, eHealthInsurance, Livelyme, CommunityHealthAdvocates, eHealthInsurance, TheStreet, HealthCareMarkets, Fidelity, ValuePenguin, eHealthInsurance, HealthCareInsider, eHealthInsurance, eHealthInsurance, eHealthInsurance, ValuePenguin, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, eHealthInsurance, Expatrio, HealthManagement, Internations, Internations, PacificPrime, InternnationaLiving, MoveHub, MoveHub, eHealthInsurance

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