Average Health Insurance Cost per Month (2024)
The average health insurance cost per month is $495. The average health insurance rates a month are determined by age, health, plan type, deductibles, and where you live. Higher deductibles can lower your monthly rates, but seniors pay more because they correlate to a higher frequency of claims.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Mar 10, 2024
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Mar 10, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Ten key factors determine your health insurance rates
- On average, health insurance rates are about $495 a month
- UnitedHealth Group Inc. has the highest market share in the health insurance industry
The average health insurance cost per month depends on several factors. But how much is health insurance? Is the average health insurance cost for a family of 4 more expensive?
Don’t worry — we’re here to answer your frequently asked questions about affordable health insurance costs.
Our guide explores the average health insurance costs by state, tier, and plan type. Also, we’ll list the best health insurance companies in the United States. Check out how to buy health insurance so you have enough coverage.
After you learn everything about the average health insurance cost per month, enter your ZIP code in the free online quote tool above to compare multiple companies near you.
What’s the average cost of health insurance?
The average cost of health insurance in 2021 is $495 a month, which is $10 cheaper than health insurance rates in 2020.
According to the Centers for Disease Control (CDC), 12.1% of people in the United States are uninsured, and 63.7% have some type of private health insurance.
However, the average insurance cost varies for each person. Several factors determine whether affordable health insurance is available to you.
Here are ten personal factors that determine how much you pay for insurance:
- Age
- Where you live
- Tobacco use (smoking)
- Number of people who receive health insurance
- Metal tier
- Health insurance plan type
- State and federal regulations
- Employer size
- The county where you live
- Your income
But reviewing the average cost before you buy health insurance can give you an idea of how much you’ll spend per month on health coverage.
Read more: Best Health Insurance Quotes
What’s the average health insurance rate by age group?
Age is one of the most significant factors for health insurance. Health insurance companies gauge your risk for filing claims based on your age. But which age group pays more?
Let’s compare health insurance rates by age.
- 21-year-old – $374/mo
- 25-year-old – $376/mo
- 30-year-old – $425/mo
- 35-year-old – $457/mo
- 40-year-old – $478/mo
- 45-year-old – $540/mo
- 50-year-old – $668/mo
- 55-year-old – $835/mo
- 60-year-old – $1,016/mo
- 65-year-old – $1,123/mo
Younger health insurance policyholders have more affordable health insurance rates because they’re less likely to file a health insurance claim.
However, people with high-risk lifestyles and hobbies (smokers, skydivers, and pro fighters) pay more expensive rates. Life insurance is also more expensive for high-risk individuals.
Private health insurance for seniors is expensive. Seniors should apply for Medicare to save on costly health insurance. Find the best overall Medicare company online to get health coverage.
Read more: What does health insurance cover?
How much does health insurance cost across the United States?
The state where you live is also a major factor when determining health insurance. The average health insurance cost per month differs. But which state has the cheapest health insurance rates? Let’s review.
Average Monthly and Annual Health Insurance Rates by State
| States | Monthly Health Insurance Rates | Annual Health Insurance Rates | % Change From Average |
|---|---|---|---|
| Alabama | $514 | $6,163 | 3.76% |
| Alaska | $572 | $6,869 | 15.65% |
| Arizona | $490 | $5,877 | -1.05% |
| Arkansas | $426 | $5,112 | -13.94% |
| California | $588 | $7,056 | 18.80% |
| Colorado | $377 | $4,524 | -23.84% |
| Connecticut | $505 | $6,062 | 2.07% |
| Delaware | $513 | $6,154 | 3.61% |
| Florida | $528 | $6,336 | 6.68% |
| Georgia | $489 | $5,874 | -1.11% |
| Hawaii | $446 | $5,353 | -9.87% |
| Idaho | $477 | $5,723 | -3.64% |
| Illinois | $517 | $6,203 | 4.44% |
| Indiana | $462 | $5,543 | -6.68% |
| Iowa | $451 | $5,411 | -8.91% |
| Kansas | $511 | $6,138 | 3.34% |
| Kentucky | $470 | $5,641 | -5.03% |
| Louisiana | $629 | $7,545 | 27.02% |
| Maine | $431 | $5,172 | -12.93% |
| Maryland | $344 | $4,122 | -30.60% |
| Massachusetts | $599 | $7,184 | 20.95% |
| Michigan | $402 | $4,828 | -18.71% |
| Minnesota | $362 | $4,340 | -26.93% |
| Mississippi | $485 | $5,821 | -1.99% |
| Missouri | $548 | $6,572 | 10.65% |
| Montana | $449 | $5,393 | -9.21% |
| Nebraska | $615 | $7,379 | 24.24% |
| Nevada | $566 | $6,792 | 14.36% |
| New Hampshire | $335 | $4,024 | -32.25% |
| New Jersey | $543 | $6,521 | 9.79% |
| New Mexico | $350 | $4,196 | -29.36% |
| New York | $701 | $8,413 | 41.64% |
| North Carolina | $521 | $6,247 | 5.18% |
| North Dakota | $410 | $4,923 | -17.12% |
| Ohio | $435 | $5,223 | -12.07% |
| Oklahoma | $539 | $6,464 | 8.83% |
| Oregon | $467 | $5,603 | -5.67% |
| Pennsylvania | $449 | $5,218 | -9.29% |
| Rhode Island | $417 | $4,999 | -15.84% |
| South Carolina | $462 | $5,550 | -6.56% |
| South Dakota | $561 | $6,730 | 13.30% |
| Tennessee | $495 | $5,937 | -0.05% |
| Texas | $492 | $5,900 | -0.67% |
| Utah | $477 | $5,730 | -3.54% |
| Vermont | $649 | $7,786 | 31.09% |
| Virginia | $443 | $5,318 | -10.47% |
| Washington | $394 | $4,734 | -20.30% |
| West Virginia | $712 | $8,540 | 43.79% |
| Wisconsin | $461 | $5,527 | -6.95% |
| Wyoming | $670 | $8,039 | 35.34% |
| National Average | $495 | $5,940 | 0.00% |
New Hampshire, Maryland, and New Mexico are the most affordable states for individual health insurance.
Meanwhile, Wyoming, New York, and West Virginia are the most expensive states for health insurance.
How much are health insurance rates by metal tier?
Health insurance policies have various levels. The lowest health insurance tier is catastrophic, and the highest tier is platinum. Let’s look at which tier is more expensive.
- Catastrophic – $313/mo
- Bronze – $387/mo
- Expanded Bronze – $418/mo
- Silver – $539/mo
- Gold – $594/mo
- Platinum – $709/mo
Catastrophic tiers are cheaper because they have the highest deductibles. Higher metal tiers have lower deductibles but more expensive health insurance rates.
Can plan types affect health insurance quotes?
Yes, they can. Each plan works differently and produces various health insurance quotes.
Here’s an example of how much health insurance costs by plan type:
- Health Maintenance Organization (HMO) – $427/mo
- Point of Service (POS) – $462/mo
- Exclusive Provider Organization (EPO) – $469/mo
- Preferred Provider Organization (PPO) – $517/mo
The PPO plan is the most expensive. However, HMO health insurance plans are the cheapest.
Read more: Point of Service (POS) Health Insurance: What to Know & How to Save
Are health insurance rates more affordable through an employer?
Individual health insurance premiums are about $500 a month, but health insurance through an employer is $104 per month on average.
Employer health insurance has massive benefits for families. A group health insurance policy for your family can be $466 a month, which is much cheaper than what some individuals pay per month.
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Can I lower my health insurance rates?
The short answer is yes. You can decrease your health insurance rates by raising your deductibles and choosing a lower tier.
Also, the Affordable Care Act allows you to get cheaper insurance rates if you qualify for credits toward your health insurance policy. And in some cases, you’ll pay no money at all for health insurance.
If your health insurance company is still too expensive, start shopping at other health insurance companies.
How much are health insurance deductibles?
Deductibles are the amount of money you pay before a health insurance company provides a claim payout. But how much are deductibles for each tier?
- Bronze Deductibles – $7,000
- Silver Deductibles – $5,000
- Gold Deductibles – $1,500
- Platinum Deductibles – $100
These deductibles are rough estimates. Deductibles vary for each company, but lower metal tiers correlate to higher deductibles.
Are there other cost-sharing types?
Several cost-sharing types are available at the best insurance companies. Here are three cost-sharing items you’ll see when you buy health insurance:
- Copay – The policyholder pays a fixed amount, and the health insurance company covers the other half.
- Coinsurance – You usually pay a lower percentage while the health insurance company covers a higher percentage of the total cost.
- Out-of-pocket maximum – This is the total amount you’re expected to pay within the plan’s year, and it comes after you’ve paid your deductible.
Cheaper health insurance policies usually have more expensive out-of-pocket costs.
What are the best health insurance companies in the United States?
As you shop for health insurance, you may want to start looking at the best health insurance companies in the United States.
Check out the list below to see which health insurance companies are the top providers in 2021:
Top 10 Health Insurance Companies by Direct Premiums Written and Market Share
| Rank | Companies | Direct Premiums Written | Market Share |
|---|---|---|---|
| 1st | UnitedHealth Group Inc. | $119,278,889 | 14% |
| 2nd | Anthem Inc. | $75,361,349 | 9% |
| 3rd | Humana Inc. | $74,231,223 | 9% |
| 4th | Centene Corp. | $72,862,820 | 9% |
| 5th | HealthCare Services Corp. | $44,520,575 | 5% |
| 6th | CVS Health Corp | $29,377,533 | 4% |
| 7th | Kaiser Permanente | $20,955,411 | 3% |
| 8th | Independence Health Group Inc. | $20,105,855 | 2% |
| 9th | GuideWell Mutual Holding Corp. | $19,314,053 | 2% |
| 10th | Molina Healthcare Inc. | $19,106,224 | 2% |
Read more: Molina Healthcare Review & Complaints: Health, Medicare & Medicaid Insurance
UnitedHealth Group Inc. earns close to $120 million, and it has the largest market share in the health insurance industry.
Anthem, Humana, and Centene compete for the number two spot in direct premiums written and market share.
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How to Lower Your Average Health Insurance Cost per Month
The average health insurance cost is a general projection of what most people pay for health insurance per month. However, your health insurance quotes may generate more affordable or more expensive rates.
You can find out how much you’ll pay for health insurance when you shop around.
Now that you’ve seen the average health insurance costs per month, use our free online quote tool to compare multiple insurance companies in your area.
Case Studies: Average Health Insurance Cost per Month
Case Study 1: Affordable Coverage for a Young Individual
Sarah, a 28-year-old individual in good health, finds a plan that offers a balance between cost and coverage. She pays an average of $250 per month for her health insurance, providing necessary coverage for preventive care and emergencies.
Case Study 2: Family Coverage With Comprehensive Benefits
John, a 35-year-old married individual with two children, selects a family plan that costs $800 per month. This plan offers comprehensive benefits, including doctor visits, prescription medications, and preventive care for the entire family.
Case Study 3: Affordable Coverage for a Senior Citizen
Mary, a 65-year-old retiree eligible for Medicare, chooses a Medicare Supplement plan costing $300 per month. This plan ensures comprehensive coverage for her healthcare needs, supplementing her existing Medicare benefits.
Frequently Asked Questions
How much is health insurance per month for a single person?
The cost of health insurance for an individual can vary based on various factors such as age, location, coverage level, and medical history. However, on average, an individual may expect to pay around $495 per month for health insurance coverage.
How much is a health insurance policy for a non-smoking 30-year-old?
The sentence A 30-year-old can pay between $227 and $425 per month implies that a 30-year-old person has the option to pay a monthly amount that falls within the range of $227 to $425. This amount could be related to a variety of expenses, such as rent, insurance, or loan payments.
Where can I find the cheapest health insurance?
Medicaid has the most affordable insurance policies, but Medicaid is made for families and individuals with a limited income.
Does where I live affect the cost of health insurance?
Yes, the cost of health insurance can vary depending on where you live. In some areas, there may be more competition among insurance providers, leading to lower premiums. In other areas, there may be fewer insurance options available, leading to higher premiums.
How does my age affect the cost of health insurance?
Typically, the older you are, the more expensive your health insurance premiums will be. This is because older individuals tend to have more health problems and require more medical care than younger individuals.
Can I purchase health insurance outside of the open enrollment period?
In some cases, you may be able to purchase health insurance outside of the open enrollment period if you experience a qualifying life event, such as losing your job or getting married. You may also be able to purchase health insurance through a special enrollment period if you qualify.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.