Average Health Insurance Cost Per month – All Necessary Details

This article will explore the average health insurance cost per month and all factors that affect it, in addition to all benefits of health insurance.

Health is an essential thing in our lives. A healthy mind and a healthy body help an individual live his life to his fullest capabilities. Having a healthy body means staying fit and enjoying a state of complete physical, mental, and social well-being altogether. Being healthy simply means to be spiritually, mentally, and physically aligned and present and not lacking in any possible way.

Simply not having a disease does not indicate an unhealthy body. Thus, the importance of health in our lives is very apparent and evident. A person with a healthy mindset and body can perform a lot better than one who lacks in both or any one area. To achieve good health standards, it is necessary to first stick to a healthy lifestyle. Living a healthy life can also help in the prevention of other chronic diseases and illnesses.

Moreover, taking care of your physical, mental, and spiritual health can impact how you see or feel about yourself. Good health can also build up a positive impact on a person and contribute significantly to his overall growth. Feeling good about yourself is also linked to your health, and it can further boost self-esteem and confidence. Understanding your bodily needs and doing what is right for it is the best possible way to achieve health.

People often fall prey to many diseases with age, poor diet, and lousy routines. Some of them are chronic and stay with a person leading to further health issues and problems. For the treatment and timely prevention of such diseases, it is necessary to have medication and examination at the right time. But bearing medical expenses is not easy for every person. This is why health insurance has proven to be a life-saving factor in the lives of millions of people. Health insurance has been helping people in treating their illnesses and maintaining a good lifestyle to avoid further complications and health issues.

To avail of the most suitable insurance policy, it is also necessary to understand the average health insurance cost per month. Every insurance program varies from the other and holds different features. People purchase the most appropriate insurance policy that suits their budget and offers the most coverage. This way, they can easily ensure a good life and avoid fatal diseases, illnesses, and problems related to these diseases.

What is health insurance?

Health insurance is the type of insurance that allows a person to cover all the medical expenses he has to pay for due to his illness. These expenses can also be in the case of a sudden injury or for hospital bills and costs that can cover medicines and fees for doctor consultation as well. Health insurance provides financial protection and relief in serious accidental situations or sicknesses.

For instance, due to some accident, if a person injures himself or breaks his leg, it can cost him up to $7,500 or even more if there are multiple injuries. Health insurance can assist a person in covering his medical bills and expenses to protect him from highly costly bills. Any health insurance plan provides and offers thorough coverage against all hospitalization charges, pre-hospitalization, as well as, post-hospitalization charges.

Moreover, it also covers ambulance expenses in case of need. Simply put, health insurance offers complete compensation in case of loss of income due to an accident so that a person does not have to worry about costly bills after going through a challenging situation. There are multiple health insurance companies whose insurance policies and programs vary. Moreover, there are different types of health insurance, and individuals can avail themselves of the most suitable and appropriate one.

An average health insurance cost per month also varies simultaneously in accordance with the insurance program. This is why we can also say that there is the availability of many options for people. A health life insurance program can help individuals live life up to the maximum health standards and prevent secondary health issues.

Types of health insurance programs

Depending upon the types of health insurance, two major health insurance programs are private health insurance programs and public or government health insurance.

Public or private health insurance

This type of health insurance refers to any private entity’s health coverage without state or federal involvement. All kinds of insurance companies, agents, and brokers fall under this category of insurance providers.

These policies’ average health insurance cost per month varies from one company to another and is available to all citizens.  According to the Centers for Disease Control and Prevention (CDC), the US healthcare system relies upon private health insurance policies and programs to a large extent. Some surveys even show that around 63.7% of people under 65 years also have private health insurance.

Government or public health insurance program

Insurance programs run by the state or the local government are called public or government health insurance programs. These programs offer coverage for some or all of the medical expenses for an individual. It further has some types:

  • Medicaid
  • Medicare
  • The Veterans Health Administration
  • Indian Health Services

These health insurance programs help the state subsidize healthcare to get a premium cost in exchange. All in all, these health insurance programs provide several beneficial policies that can help individuals live a quality life.

Other types

Some plans are independent, and an insurer provides them by planning policies and connecting providers with those in need. This type of insurance plans.

Some people may also define an insurer by administering its plans and clicking with providers. Here are some examples of the kinds of programs available. Following are some of the most relevant examples:

Managed-care plans

This type of insurance program includes insurers having different contracts with insurance providers. These plans are usually low-cost and provide coverage of health issues to some extent. People with this type of insurance have to pay for additional costs and other expenses if they go to hospitals and clinics that are not a part of the policy clause.

The coverage of health problems and issues depends entirely on how much an insurance plan costs. The more expensive an insurance program is, the more facilities it will provide to its holder. People who already have low incomes and cannot buy any insurance plan and, in any case, cannot avail of state-run insurance policies rely on these programs to get some coverage.

Indemnity or Fee-for-service plans

This type of insurance plan allows people to choose the hospital, clinic, and other treatment centers. The insurance plan covers the entire treatment cost. This plan is more beneficial for people who want to achieve a more thorough average health insurance cost per month for the most coverage. Usually, this insurance plan covers around 80% of the costs of any health treatment, while the rest of the 20% is payable through any coinsurance.

Health Maintenance Organization plans

These private organizations provide medical care directly to a person who gets insurance. According to this program, the policyholder can get primary care that a physician coordinates and provides all necessary treatments coverage. These health insurance plans typically undertake treatment procedures that a physician or a family doctor prescribes. Moreover, this type of plan is usually the cheapest option for anyone whenever the need arises. The average health insurance cost per month varies in such cases.

Preferred Provider Organization plans

Preferred provider plan (PPO) is, although similar to an indemnity plan, as it allows the policyholder to visit any doctor or physician of their own choice. But the only difference is that the preferred provider plan has a list of chosen and selected doctors and physicians from which people can usually choose whichever doctor they like.

This type of insurance is also low-cost and provides doctors to treat different health issues with which the insurance company already has negotiated the costs and expenses of the treatments. This policy allows its holders to self-refer to specialists of their own choice without getting referrals from a primary physician.

Typically, this type of insurance plan works better as people prefer relying on doctors for their own decisions. Getting treatment is also an assuring process for people who purchase such insurance programs.

Point-of-Service plans

This insurance policy combines preferred provider plans and health maintenance organization plans. According to the policy, any insurance holder can choose a mixed treatment for himself. People can either go to primary care physicians or if they want to. They can also get their medical aid within the insurer’s provider network and include non-network providers.

This plan further has types depending upon the cost and expenses. The more expensive any insurance plan is, the more it offers its purchaser.

Advertisement

Factors affecting insurance rates

There is usually a question: What does an average health insurance cost per month? There is no straight answer to it because every insurance program varies not in its coverage, but also its cost and expenses. The coverage price differs from all existing plans for any particular health insurance policy.

Every state has the authority to limit the degree of application and coverage while impacting the rates. These factors and aspects can help you get additional discounts or less costly plans. Different factors also affect rates of insurance policies and programs, out of which some are:

Age of a person

Although insurance was primarily introduced to help citizens with different costly instances, the age factor is a crucial aspect that affects the rates of any insurance plan. The cost of health care coverage depends heavily on age. Usually, older adults require more health coverage than young ones, except for chronic diseases and other issues. For instance, children up to 14 years will pay regular costs, but premiums increase annually from 15 years.

Some states, specifically New York and Vermont, do not use age when determining health insurance premiums. Still, it is a significant factor contributing to determining the health insurance premiums for most states in the USA.

The health insurance rates and costs start increasing as the person gets older. The reason for this is that older adults require more medical coverage. There is a considerable cost difference between a health insurance premium for a 21-year-old and the average health insurance cost per month for any older adult above 55. This is why it is essential to mark the importance of age in determining insurance rates.

The location where he resides

The place where you live can also affect your health insurance prices. Since every state has a different set of rules when making insurance policies for its residents, the cost also varies from state to state. This is why health insurance providers and companies set policies according to a person’s residence and relative state. Two people with the same insurance policy may have to pay differently for the same program depending on their location.

The rules of a state or municipality affect premiums and other insurance rates considerably. Thus, it may depend on your state, and you may or may not avail more benefits than someone else who purchases the same insurance policy and program as yourself. So, we cannot deny the role of your location in determining average health insurance costs per month and other policy rates and prices.

Tobacco usage and smoking

If a person smokes, tobacco usage and smoking can also affect his insurance rates. A smoker has to pay up to 50% higher premiums than a non-smoker. So whether or not a person is a smoker, the health insurance policy rates will also increase or decrease accordingly. Some health insurance companies charge smokers more than their non-tobacco user clients. This is why this factor affects insurance pricing and rates.

Finally, it is safe to say that any plan will influence the average health insurance cost per month. Each policy carries different premium costs based on the percentage of overall healthcare costs they cover. Any plan’s deductibles, copays, coinsurance, and the number of family members are additional factors affecting its price.

Type of insurance plan

The type of insurance plan also determines the overall cost of any policy. Some other factors include an individual project or a family plan. For instance, individual plans cost a lot less than plans that involve family coverage. The average health insurance cost per month depends upon the number of people it covers, all people’s ages, and their smoking history.

All these factors collectively impact the rates of any insurance program or policy. Keeping all these factors in mind is also an essential task.

Average health insurance rates by age

Are you wondering how insurance premiums rely upon different factors? The Affordable Care Act ensures that insurance companies cannot discriminate based on gender, current health status, or medical history of any person, so these factors do not have any hand in determining the rates.  Age can change the insurance rates of any policy or program.

Thus, understanding the age and how it impacts a policy’s rates is beneficial and informative. For a better understanding, we can take the example of 64 years old. According to policy features, he has to pay three times more premiums in the form of premiums than a 21-year-old individual.

Below is a table showing how age can impact insurance rates for health policies and programs.

Age Average monthly cost of a Silver health plan

 

Premium multiple
0–14 $286 0.77
15 $312 0.83
16 $321 0.86
17 $331 0.89
18 $341 0.91
19 $352 0.94
20 $363 0.97
21 $374 1
22 $374 1
23 $374 1
24 $374 1
25 $376 1.01
26 $383 1.02
27 $392 1.05
28 $407 1.09
29 $419 1.12
30 $425 1.14
31 $434 1.16
32 $443 1.18
33 $448 1.20
34 $454 1.21
35 $457 1.22
36 $460 1.23
37 $463 1.24
38 $466 1.25
39 $472 1.26
40 $478 1.28
41 $487 1.30
42 $496 1.33
43 $508 1.36
44 $523 1.40
45 $540 1.44
46 $561 1.50
47 $585 1.56
48 $612 1.64
49 $639 1.71
50 $668 1.79
51 $698 1.87
52 $731 1.95
53 $764 2.04
54 $799 2.14
55 $835 2.23
56 $873 2.33
57 $912 2.44
58 $954 2.55
59 $974 2.60
60 $1,016 2.72
61 $1,052 2.81
62 $1,075 2.87
63 $1,105 2.95
64 and above $1,123 3.00

 

This table is courtesy of valuepenguin.com. This table provides data to understand what premium is applicable on what age range for different health insurance policies.

The average health insurance cost per month for one person

The average health insurance cost per month varies differently for an individual or an entire family. A  2020 survey reports that an individual’s average health insurance cost is around $456. Typically, health insurance plans are always available for people to purchase privately. This allows an individual to have better medical coverage personally.

Although family plans cover the majority of medical finances, they may not meet the needs of an individual. So, depending upon the insurance plan and four factors, the cost of health insurance per month is determined for any individual. These factors include premiums, deductibles, co-pays, and out-of-pocket payments.

The average health insurance cost for single males

According to a report in 2018, the aver age premium cost for a single man was $418 per month. If a person were under the age of 26 or had employer-sponsored health insurance, he would still be eligible for a parental health program.

Advertisement

Since age contributes significantly to average health insurance cost per month, any male who is single and is young can have the lowest health insurance premium costs. Young males even have to pay less than women if we compare their premium prices.

How much will a single man pay?

The price for health insurance programs is further broken down into the following categories:

  • Premium
  • Deductible
  • Co-pays and co-insurance
  • Out-of-the-pocket

The premium for a single man

Premium is the monthly amount that a person has to pay to keep his insurance active. Missing premium prices may result in the deactivation of the policy. According to the average health insurance cost per month for a male, an amount of $418 is payable every month to keep the insurance status active.

Other than location, age, and smoking, some other things can also affect the premium rates for a single male. These factors include the type of plans, for instance, Bronze, Silver, Gold, Platinum, where Bronze typically has the lowest premium rates but will have the highest deductibles.

Similarly, if you choose a Platinum plan, your premium will be highest, and your deductibles will be lowest in comparison to other insurance programs.

Deductibles

Deductibles are the amount a person has to pay before any insurance company starts providing medical coverage to him. This amount is inversely proportional to your premiums. If you purchase the highest cost plan, such as platinum, your deductibles will be less than all other options. But since wellness and preventive examination also fall under the coverage range, it is unlikely that a person has to pay deductibles to get services.

This amount is only necessary when a person receives immediate treatment due to sickness or illness or has a condition that needs instant assistance.

Copays and coinsurance

This factor is not mandatory in every health insurance plan. However, some policies require the insured to pay a little cost of his treatments. This is a cost-sharing procedure where policyholders have to pay for doctor visits or other necessary treatments. They do not have to pay the entire medical expense, but they share a cost with their insurance company.

Out-of-the-pocket maximums

The total annual amount that a person has to pay out of his own pocket for his treatments and examinations, in the case of insurance programs that do not cover entire medical expenses, are out-of-the-pocket maximums. The policy program also decides annual maximums that a person has to pay.

Thus, an average health insurance cost per month depends upon the factors that affect its pricing and the type of plan a single man chooses and purchases.

The average health insurance cost for single female

The title “pink tax” correctly demonstrates the additional amount that women had to pay for goods manufactured for them as their target audience. This tax was compulsory until 2009, and health insurance also fell into the pink tax list umbrella.

Advertisement

Before 2009, if a single woman wanted to get pregnant or was already pregnant, she had to buy a separate health insurance coverage. Only 13% of the total available health plans provided maternity coverage. If any woman’s plan did not include maternity coverage, a separate insurance policy was mandatory.

Moreover, the maternity plans included in the health insurance policies cost so much more than the ones with no maternity inclusion. Women also had to pay extra for birth-control coverage.

Another unacceptable thing that health insurance plans did earlier was charging non-smoking women more than male smokers of the same age bracket.

The factors that impact the average health insurance cost per month for a single female are the same as a single man.

The average price range for health insurance

For a 21-year-old, here are the average monthly premiums depending on different factors and aspects:

Plan type

  • Bronze: $201
  • Silver: $247
  • Gold: $291
  • Platinum: $363

State/ location

Alaska: $426

Utah: $180

Here, Alaska offers the most expensive health insurance programs, whereas Utah provides the least expensive ones.

The average health insurance cost for a family of 4

Protecting your family from diseases and health issues and providing them with healthcare is essential. But in today’s time, saving money is an equally important task. Money has become a necessity in life. No one can meet quality standards of life without money, so people have to pay expensive medical bills when it comes to health. Everyone cannot afford such amounts, and thus they need something to aid them. Health insurance is available for these people to ensure the quality of life for their loved ones.

All in all, family health insurance keeps your family’s health and financial status in check. This insurance helps family members in helping each other whenever the need arises. Consider a family member who needs assistance due to some medical emergency but either does not have medical insurance or his plan type does not cover that particular issue.

How can he pay for his treatment? This is where family insurance helps, and you can pay hospital bills and other costs through your insurance program. Thus, family health insurance benefits the entire family, even if they individually purchase it.

The average family health insurance cost per month

The monthly payment that any policyholder has to pay is the premium payment necessary to keep the insurance program active. In 2020, the average health insurance cost per month for a family health insurance program was $1,152, according to a recent survey. Premium amount varies depending upon many factors, including members of a family, the location where a family lives, and the type of plan they choose.

These aspects determine the premium value and average amount a family has to pay to its insurance company. Several private companies are providing health insurance for individuals and their families. Families can choose their program type with coverage details depending upon their affordability status. Purchasing a plan that meets your budget requirements and provides the maximum coverage is the perfect choice for a family of 4. Generally in a family of 4 members, two parents and two children. But the relations among members can vary as well.

Through these insurance programs, people can ensure better healthcare assistance for themselves and their family members. Family health insurance programs are costly compared to individual programs as their coverage type is different. The price you have to pay for a family health insurance depends again on the members’ ages, location, marital status, etc.

So the better trick is to check out all the individual and family health insurance plans available in your area and use our free comparison tools to weigh your options.

Find out insurance costs with the health insurance cost calculator

There is a possible way to calculate your health insurance cost and get an idea of how much a person has to pay. This knowledge can help people know their budget and find more suitable options for themselves. The total amount to pay for health care coverage is easy to calculate using a simple formula. This allows individuals to estimate before they have to buy a program.

The sum of your monthly premium, your deductibles, out-of-pocket charges, and any co-paying and co-sharing amounts is the total cost of your health insurance program. Every company has a different policy and rule set that it follows. But, insurance costs are usually calculated using this formula. People can easily find out the average health insurance cost per month with the help of this data.

This way, policyholders can compare their budget with the estimated cost a company would require, and they can decide beforehand. Generally, your total cost is your premium + deductible + out-of-pocket costs + any copayments/coinsurance.

Benefits of health insurance

A health insurance program can provide a series of benefits to people. It provides health coverage to both you and your family. In addition to strengthening your financial status, health insurance programs help with monthly healthcare assistance. Regardless of good health, any person can need medical assistance. Sudden health issues can arise, and one may not cover expenses out of pocket.

In such a situation, a health insurance program helps individuals and their family members and aids them in getting necessary medical examinations and treatment. Health insurance is a good measure when people want to plan ahead of time and stay away from issues and problems related to health. In case of sudden emergencies, a trip to the hospital can cost an arm and a leg, and usually, not everyone has enough money present to pay off all costly bills.

They require something to rely on and get assistance from. Therefore, health insurance programs are nothing but saviors in time of need. It is like your small investment every month to keep yourself and your loved ones healthy and fit. Living your life away from health issues is the actual reward, and for this purpose, routine checkups and preventive examinations are also in need.

Following are some of the facts regarding healthcare that can emphasize the importance of health care policies:

  • The average cost of any sudden emergency room trip for an average adult is about $700, not including any tests or hospitalization, which may increase the bill to well over $1,000.1
  • A broken leg can cost up to $7,500.
  • Average costs for childbirth are up to $8,800 and well over $10,000 for C-section delivery.1,2
  • The total cost of a hip replacement can run a whopping $32,000.

Benefits you need today

Healthcare is no less than any valuable asset that any person can possess. A good healthcare insurance plan can protect your health and provide stability to your finances. In addition to individual benefits, health insurance policies can offer manifold advantages to families. Insurance companies have also provided easy access to people who fail to get a public insurance program with their policies and programs. With increasing risk factors that continuously affect our health and cause chronic diseases, health insurance has become mandatory. Some other essential health care benefits in today’s time are:

  • Finding medical assistance and supervision near your homes.
  • Peace of mind by having medical coverage can also help you not worry about expenses for treatments.
  • Access to affordable care and health information to keep you healthy.

Cashless claims to treatments

Healthcare programs allow individuals to get treatment with cashless claims to healthcare procedures. This way, all a person has to do is go to his nearest healthcare unit that works with his policy-providing company and get the claim of his treatment. The person does not have to pay anything if his insurance plan covers the entire treatment. Even if the program does not cover the whole treatment, it will still be enough relief to the policyholder as he will not have to pay the entire cost himself.

But some specific rules are necessary. For instance, the treatment should be within the coverage amount that a policy provides. If the treatment exceeds the coverage cost, the policyholder must pay the additional expenses. The average health insurance cost per month needs to be enough to provide sufficient healthcare coverage. All in all, it is convenient for people who cannot manage to have money in their possession all the time.

Portability benefits

Probability benefits allow you to change your insurance company or insurance program without losing your current benefits. This feature enables any policyholder to enjoy maximum insurance benefits and, if need be, switch to better insurance programs or companies. It also provides the opportunity never to feel restricted within one program or company. Insurers can easily choose the company they think provides suitable coverage and invest in programs that suit their interests.

Advertisement

Without good health insurance programs, people cannot increase their life expectancy or live quality lives. So to enjoy life to its fullest, avoid short-term and long-term health problems, and enjoy quality standards, it is necessary to have healthcare access.

Conclusion

Health insurance policies have provided so much ease for people. These programs have facilitated individuals and have also helped humans in general. The death rate has decreased, and people are living a quality life. Life expectancy has generally increased. People can live longer lives and better lives due to healthcare measures and treatments. The government can ensure a healthy population through private and public healthcare programs. Every state in the USA has the authority to decide for itself and make decisions without the federal government’s involvement in healthcare insurance.

At age 65, sufficient access to healthcare has increased life expectancy by approximately 2.0–2.5 years in men and women and across urban-rural areas compared to those with inadequate access to healthcare. At age 85, the corresponding increase in life expectancy was 1.0–1.2 years. So not just life standards but also life duration has increased. It also has decreased death rates and the occurrence of other diseases. The Institute of Medicine’s evidence strengthens the conclusion that health insurance saves lives. The odds of dying among the insured relative to the uninsured is 0.71 to 0.97.

Nowadays, healthcare insurance is a blessing due to increasing and alarming health issues in youth and adults. The best way is to consider different insurance programs and companies to find suitable plans for yourself and your family. The improvement, however, is still required. The availability of healthcare needs to be the main aim, and the cost also needs some reevaluation. So that more and more people can reach out and get the required healthcare themselves. Thus, it is necessary to note the impact of healthcare and ensure easy access and availability to all people regardless of their age, gender, marital status, or any other factor.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.

Leave a Reply

Insurance Noon is the world's leading source of insurance related content on the web, focusing on industry news, buying guides, reviews, and much more.