How Much is Health Insurance?

by | Apr 6, 2023

Health insurance is an important investment for individuals and families to protect themselves against unforeseen medical expenses. It can cover the costs of doctor visits, prescription drugs, hospitalization, and other medical procedures. However, the cost of health insurance can vary greatly depending on a number of factors. In this blog, we will explore the different factors that impact the cost of health insurance and provide a general idea of how much it can cost.

Factors That Impact the Cost of Health Insurance

  1. Type of plan: The type of health insurance plan you choose can have a big impact on the cost. There are four main types of health insurance plans: HMOs, PPOs, EPOs, and POS plans. HMOs generally have the lowest premiums but require you to stay within a network of providers. PPOs offer more flexibility in terms of providers but have higher premiums. EPOs and POS plans are a mix of HMOs and PPOs and fall somewhere in between in terms of cost.
  2. Age: Younger individuals typically have lower health insurance premiums compared to older individuals. This is because younger people tend to have fewer health issues and require less medical care.
  3. Location: The cost of health insurance can vary depending on where you live. Health insurance premiums tend to be higher in areas with higher healthcare costs.
  4. Income: Those with a lower income may qualify for state Medicaid programs or a subsidy on the healthcare marketplace. These tax subsidies can greatly reduce or eliminate monthly premiums for some low-income individuals.
  5. Deductibles and co-pays: The amount of your deductible and co-pays can also impact the cost of your health insurance. Plans with higher deductibles and co-pays generally have lower premiums, while plans with lower deductibles and co-pays have higher premiums.
  6. Pre-existing conditions: If you have a pre-existing condition, you may be required to pay higher premiums or may be denied coverage altogether. Under the Affordable Care Act (ACA), some insurers are prohibited from denying coverage based on pre-existing conditions. However, health plans that don’t fall under this legislation can still deny coverage.
  7. Tobacco use: Smokers and other tobacco users typically pay higher premiums for health insurance due to the increased risk of health problems associated with tobacco use.

How Much Does Health Insurance Cost?

The cost of health insurance can vary greatly depending on the factors listed above. According to the Kaiser Family Foundation, the average cost of health insurance for a single person in 2021 was $452 per month. However, this can vary significantly depending on where you live, the type of plan you choose, and other factors.

Here are some general ranges for health insurance costs:

  1. Employer-sponsored plans: Many employers offer health insurance plans to their employees. The cost of these plans varies depending on the employer and the type of plan offered. According to a survey by the National Business Group on Health, the average annual premium for employer-sponsored health insurance in 2021 was $7,188 for single coverage and $20,576 for family coverage.
  2. Individual plans: If you are not eligible for employer-sponsored health insurance or are self-employed, you can purchase individual health insurance plans through the health insurance marketplace or directly from insurance companies. The cost of individual plans varies widely depending on factors such as age, location, income, and the type of plan chosen. If you are in the market for an individual health plan on the marketplace, you can shop for plans here.
  3. Medicare: Medicare is a federal health insurance program for individuals aged 65 and over, as well as for younger people with certain disabilities. The cost of Medicare depends on a number of factors, including income and the type of coverage chosen. Most people do not pay a premium for Medicare Part A (hospital insurance), but there are premiums for Part B (medical insurance) and Part D (prescription drug coverage). The base premium for Medicare Part B in 2023 is $164.90 per month. Those with high incomes may pay more for Part B.
  4. Medicaid: Medicaid is a joint federal-state program that provides health insurance to low-income individuals and families. The cost of Medicaid varies by state, but it is typically low or no cost for eligible individuals. The eligibility requirements for Medicaid vary by state and include factors such as income, age, and disability status.

It is important to note that these are just general ranges for health insurance costs and that the cost of health insurance can vary greatly based on individual circumstances. It is important to carefully consider your healthcare needs and budget when choosing a health insurance plan.

Ways to Reduce the Cost of Health Insurance

If the cost of health insurance is a concern, there are several ways you can reduce the cost:

  1. Take advantage of employer-sponsored plans: If your employer offers health insurance, this is often the most cost-effective option. Many employers also offer options for flexible spending accounts or health savings accounts, which can help you save money on healthcare expenses.
  2. Use a health insurance broker: If you are purchasing an individual plan, it is important to shop around and compare different options. The best way to do that is to use a non-captive health insurance broker. They can help you compare your options and hopefully help you find a plan that meets your needs at a lower cost.
  3. Consider a high-deductible plan: Plans with higher deductibles generally have lower premiums. If you are generally healthy and do not anticipate needing frequent medical care, a high-deductible plan may be a good option. You can always pair a high deductible plan with supplement policies for accidents or critical illnesses to cover those unexpected expenses.
  4. Look for subsidies: Depending on your income, you may be eligible for subsidies to help reduce the cost of health insurance. The ACA offers subsidies to eligible individuals to help make health insurance more affordable.

In conclusion, the cost of health insurance can vary greatly depending on a number of factors, including the type of plan, age, location, deductibles and co-pays, pre-existing conditions, and tobacco use. The average cost of health insurance for a single person in 2021 was $452 per month, but the cost can vary widely based on individual circumstances. It is important to carefully consider your healthcare needs and budget when choosing a health insurance plan and to explore options for reducing the cost such as employer-sponsored plans, shopping around, high-deductible plans, and subsidies.

Do you still need help finding out the cost of health insurance? Give us a call at 615-919-1009 or contact us here and we would be happy to guide you through the process.

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