How Much Does Insurance Cost Under the Affordable Care Act
Whether you're in charge of a household or single and in charge of only yourself, most of us have a budget. Each month we hold ourselves accountable to pay for rent, utilities, groceries, car expenses, credit card bills, and more. While some of these obligations are easy to estimate, the cost of medical care can be a little trickier.
Below are several factors that influence healthcare premiums and will help you determine how much health insurance may cost per month.
How Much Is Health Insurance per Month for One Person?
Monthly premiums for ACA Marketplace plans vary by state and can be reduced by subsidies. The average national monthly health insurance cost for one person on an Affordable Care Act (ACA) plan in 2019 was $612 before tax subsidies and $143 after tax subsidies are applied.
Wondering how insurance premiums are decided? The Affordable Care Act ensures that insurance companies cannot discriminate based on gender, current health status, or medical history. Here are factors that determine health insurance premiums.
Age
While some states, specifically New York and Vermont, do not use age when determining health insurance premiums, this is a major contributing factor for most states. The age of 21 is used as the base age, with premium costs being adjusted upwards for those in their thirties, forties, fifties, and sixties. The biggest rate increase occurs for adults over the age of 50, with rates up to three times higher than for younger people.
Tobacco
Tobacco use will affect how much health insurance costs you per month . In fact, health insurance companies can charge smokers up to 50% more than non-tobacco users. While some states have elected not to allow insurance carriers to charge smokers the maximum allowed, tobacco use does still affect pricing.
Location
Location affects the price of the premiums, too, mostly due to the amount of (or lack of) competition in a particular area or region. While competition can be intense in populated areas, rural parts of the country may only have one or two insurance companies, making pricing higher for these residents.
Plan Category
Finally, your choice of plan will also influence the average health insurance cost per month. Plans are broken down by metal tiers: Bronze, Silver, Gold, Platinum and Catastrophic. Each carries different premiums based on what percentage of overall healthcare costs they cover. Premiums are also affected by the plan's deductibles, copays, coinsurance, and number of family members on the plan.
How Much Does Health Insurance Cost per Month in Each State?
The national average health insurance premium for a benchmark plan in 2021 is $452, according to the Kaiser Family Foundation. A benchmark plan is the average premium for each state's second lowest cost silver plan.
The following data reflects the national average, and each state's average, but does not include any reduction in cost from subsidies. Rates will vary by area.
Average Monthly Health Insurance Premiums for Benchmark Plans by State Without a Subsidy
| Location | 2020 | 2021 | Percent Change |
|---|---|---|---|
| United States | $462 | $452 | -2% |
| Alabama | $553 | $590 | +7% |
| Alaska | $724 | $675 | -7% |
| Arizona | $442 | $436 | -1% |
| Arkansas | $365 | $394 | +9% |
| California | $430 | $426 | -1% |
| Colorado | $358 | $340 | -5% |
| Connecticut | $570 | $580 | +2% |
| Delaware | $548 | $540 | -1% |
| District of Columbia | $414 | $415 | 0% |
| Florida | $468 | $457 | -2% |
| Georgia | $463 | $456 | -2% |
| Hawaii | $474 | $478 | +1% |
| Idaho | $520 | $500 | -4% |
| Illinois | $451 | $423 | -6% |
| Indiana | $387 | $421 | +9% |
| Iowa | $742 | $523 | -30% |
| Kansas | $502 | $491 | -2% |
| Kentucky | $471 | $476 | +1% |
| Louisiana | $500 | $545 | +9% |
| Maine | $513 | $440 | -14% |
| Maryland | $397 | $344 | -13% |
| Massachusetts | $343 | $363 | +6% |
| Michigan | $360 | $347 | -4% |
| Minnesota | $309 | $305 | -1% |
| Mississippi | $487 | $459 | -6% |
| Missouri | $483 | $479 | -1% |
| Montana | $483 | $471 | -2% |
| Nebraska | $711 | $699 | -2% |
| Nevada | $374 | $393 | +5% |
| New Hampshire | $405 | $357 | -12 % |
| New Jersey | $392 | $405 | +3% |
| New Mexico | $345 | $339 | -2.% |
| New York | $610 | $599 | -2% |
| North Carolina | $558 | $516 | -8% |
| North Dakota | $383 | $493 | +29% |
| Ohio | $375 | $375 | 0% |
| Oklahoma | $601 | $554 | -8% |
| Oregon | $446 | $437 | -2% |
| Pennsylvania | $459 | $455 | -1% |
| Rhode Island | $332 | $349 | +5% |
| South Carolina | $509 | $476 | -6% |
| South Dakota | $593 | $618 | +4% |
| Tennessee | $511 | $466 | -9% |
| Texas | $432 | $436 | +1% |
| Utah | $486 | $472 | -3% |
| Vermont | $662 | $669 | +1% |
| Virginia | $521 | $479 | -8% |
| Washington | $391 | $388 | -1% |
| West Virginia | $628 | $654 | +4 |
| Wisconsin | $491 | $457 | -7% |
| Wyoming | $881 | $791 | -10% |
| Source: Kaiser Family Foundation Marketplace Average Benchmark Premiums. Percentages rounded to nearest whole number. | |||
How Much Does Health Insurance Cost per Month in Each State With a Subsidy?
The estimated national average cost in 2021 for a silver plan after a premium subsidy* is applied is $195. This chart, unlike the previous one, takes into account subsidies. Here, you can find the average monthly premium, with and without subsidies, for a benchmark silver plan in a select city within your state.
Monthly Health Insurance Rates by State With a Premium Subsidy *
| State | Major City | Before Subsidy in 2021 | After Subsidy in 2021 |
|---|---|---|---|
| Alabama | Birmingham | $607 | $195 |
| Alaska | Anchorage | $657 | $149 |
| Arizona | Phoenix | $391 | $195 |
| Arkansas | Little Rock | $394 | $195 |
| California | Los Angeles | $352 | $195 |
| Colorado | Denver | $334 | $195 |
| Connecticut | Hartford | $542 | $195 |
| Delaware | Wilmington | $540 | $195 |
| District of Columbia | Washington | $415 | $195 |
| Florida | Miami | $449 | $195 |
| Georgia | Atlanta | $445 | $195 |
| Hawaii | Honolulu | $474 | $167 |
| Idaho | Boise | $481 | $195 |
| Illinois | Chicago | $345 | $195 |
| Indiana | Indianapolis | $451 | $195 |
| Iowa | Cedar Rapids | $507 | $195 |
| Kansas | Wichita | $466 | $195 |
| Kentucky | Louisville | $412 | $195 |
| Louisiana | New Orleans | $528 | $195 |
| Maine | Portland | $393 | $195 |
| Maryland | Baltimore | $344 | $195 |
| Massachusetts | Boston | $364 | $195 |
| Michigan | Detroit | $308 | $195 |
| Minnesota | Minneapolis | $279 | $195 |
| Mississippi | Jackson | $459 | $195 |
| Missouri | St Louis | $415 | $195 |
| Montana | Billings | $422 | $195 |
| Nebraska | Omaha | $548 | $195 |
| Nevada | Las Vegas | $364 | $195 |
| New Hampshire | Manchester | $333 | $195 |
| New Jersey | Newark | $405 | $195 |
| New Mexico | Albuquerque | $314 | $195 |
| New York | New York City | $617 | $195 |
| North Carolina | Charlotte | $424 | $195 |
| North Dakota | Fargo | $429 | $195 |
| Ohio | Cleveland | $322 | $195 |
| Oklahoma | Okla. City | $489 | $195 |
| Oregon | Portland | $404 | $195 |
| Pennsylvania | Philadelphia | $447 | $195 |
| Rhode Island | Providence | $349 | $195 |
| South Carolina | Columbia | $567 | $195 |
| South Dakota | Sioux Falls | $478 | $195 |
| Tennessee | Nashville | $447 | $195 |
| Texas | Houston | $391 | $195 |
| Utah | Salt Lake City | $446 | $195 |
| Vermont | Burlington | $669 | $195 |
| Virginia | Richmond | $445 | $195 |
| Washington | Seattle | $373 | $195 |
| West Virginia | Huntington | $715 | $195 |
| Wisconsin | Milwaukee | $404 | $195 |
| Wyoming | Cheyenne | $731 | $195 |
| Source: Kaiser Family Foundation Health Insurance Marketplace Calculator.Subsidy amounts are based on a 40-year-old nonsmoker making $30,0000 per year. | |||
How Much Is Family Health Insurance per Month?
The average premium for a family of 4 in 2020 is was $1,437, according to customer data gathered by one health insurance agency. This does not include families who received government subsides. Like individual insurance, your family cost will depend on ages, location, plan category, tobacco use, and number of plan members.
What Is the Cheapest Health Insurance?
As you can see from the factors listed above, there's a lot that goes into determining the price of insurance. There isn't a single healthcare plan that's the most affordable for everyone. But finding the right plan for your needs is easy with HealthMarkets. Our free FitScore® technology helps you shop, compare and apply for a healthcare plan in minutes. We can even check to see if you may qualify for a tax credit. To get a better look at what plans could cost you and your family, get started now.
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* Subsidy amounts are based on a 40-year-old nonsmoker making $30,000 per year.
References:
https://www.healthcare.gov/how-plans-set-your-premiums/ | https://www.kff.org/health-reform/state-indicator/marketplace-average-benchmark-premiums | https://www.kff.org/interactive/subsidy-calculator/ | ttps://www.kff.org/health-reform/press-release/among-people-ineligible-for-subsidies-middle-class-older-adults-face-the-least-affordable-aca-premiums-especially-those-living-in-rural-areas-where-premiums-are-highest/ | https://www.ehealthinsurance.com/resources/affordable-care-act/much-health-insurance-cost-without-subsidy
How Much Does Insurance Cost Under the Affordable Care Act
Source: https://www.healthmarkets.com/content/health-insurance-cost-per-month
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