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Health insurance helps pay for your medical care. This can include regular checkups, preventive care, surgeries, and ongoing treatment regimens. To keep your health insurance, you’ll pay a monthly fee called a premium, which can cost an average of $114 to $497, depending on whether you get insurance through your job or an Affordable Care Act marketplace.
If you buy a health plan through the marketplace, the monthly cost is affected by a few things: the plan’s quality, how much of the costs you share with the insurance company, and if you can get a tax credit to help pay for it. Your age and where you live also affect the cost. Group health insurance plans often cost less because your employer helps pay for them.
Key Takeaways
- Health insurance premiums average about $114 per month for employer-sponsored plans and about $497 for individual plans.
- The older you are, the more expensive health insurance becomes, with a 30-year-old paying $618 per month and a 60-year-old paying $1,478 per month for a preferred provider organization (PPO) plan.
- You’ll pay lower premiums for a bronze-tier plan than a silver, gold, or platinum plan, but you might have higher out-of-pocket costs.
Factors Influencing Health Insurance Costs
To understand health insurance costs, it’s important to note the difference between individual and group health plans. You buy individual plans yourself, often from a website like Healthcare.gov or a state marketplace. You get group health plans through your job.
Health insurance through your job often costs less for two reasons. First, insurance companies offer lower prices because the insurance covers everyone at a company, both healthy and sick. This lowers the insurance company’s risk. Second, employers usually pay for a large part of the cost. Your job might offer different health plans, and the premium rates will vary depending on the plan you choose.
For marketplace health insurance coverage, you have a little more control over your health insurance coverage. You can choose from five plan categories—bronze, silver, gold, platinum, and catastrophic—which don’t so much dictate the quality of your health care as much as the out-of-pocket costs you’ll pay for covered services.
Bronze plans tend to have the lowest premiums but will require you to pay higher deductibles, copays, and coinsurance when you get care. The higher you go up the metal tiers, the more you’ll pay in premiums, but the less you’ll pay out of pocket. Catastrophic plans have the lowest premiums but the highest deductibles.
Personal factors also affect your health insurance costs for marketplace plans. These include:
- Your age: Younger people will be offered lower rates than older people.
- Your family size: Coverage for one or more family members will increase your rates.
- Your income: If your household income falls within 400% of the federal poverty guidelines for your family size during tax year 2025, you could be eligible for a premium tax credit.
- Where you live: Insurers offer different plans in different locations, and state insurance regulations could also affect costs.
- Whether you use tobacco: You could be charged as much as 50% more if you smoke, depending on state law.
The type of health insurance will also affect your rates. The three most common types of health plans are health maintenance organization (HMO) plans, preferred provider organization (PPO) plans, and exclusive provider organization (EPO) plans.
- HMOs have the lowest premiums but limit your care options to a network of providers and usually require a referral to see a specialist.
- PPOs have the highest premiums, but in return, you get access to a broader network of providers and won’t need a referral to see a specialist.
- EPO premiums are lower than those of PPOs but higher than those of HMOs. They have a limited network of providers, higher deductibles, and little to no out-of-network coverage.
Health Insurance Premiums by Source
The table below shows how monthly premiums differ depending on how you get your insurance. It compares costs for plans you get through your job, plans you buy through the marketplace, and Medicare Part B.
Note
The Medicare Part B premium is a monthly payment that Medicare beneficiaries pay. It covers things like doctor visits, lab tests, and outpatient care. Medicare Part B works with Medicare Part A, which is hospital insurance. Most U.S. citizens and permanent residents don’t have to pay premiums for Medicare Part A because they paid payroll taxes in the past.
| Average Monthly Individual Cost | |
|---|---|
| Employer plan | $114 |
| ACA plan | $497 |
| Medicare Part B | $185 |
Health Insurance Premiums by Age
Health insurance usually costs less for younger people. The law allows insurance companies to charge people in their 60s up to three times more than people in their early 20s. The table below shows how the average costs of plans bought through the ACA marketplace rise with age.
| Member Age | Monthly Cost |
|---|---|
| Age 18 | $423.01 |
| Age 21 | $472.88 |
| Age 27 | $496.84 |
| Age 30 | $537.66 |
| Age 40 | $605.08 |
| Age 50 | $845.82 |
| Age 60 | $1,284.45 |
Source: 2025 Qualified Health Plan Landscape File
Health Insurance Premiums by Plan Type
Each plan type has pros and cons. But the main differences between health insurance plan types (EPO, HMO, PPO) are:
- The size of the provider network
- Whether you need a referral from your primary care doctor to see a specialist
- What portion of the costs are covered if you go to a doctor or hospital outside your network
| Member Age | Average EPO Monthly Premium | Average HMO Monthly Premium | Average PPO Monthly Premium |
|---|---|---|---|
| Age 21 | $481.70 | $444.95 | $544.44 |
| Age 27 | $506.39 | $467.90 | $570.58 |
| Age 30 | $547.90 | $506.21 | $617.93 |
| Age 40 | $616.53 | $569.58 | $695.80 |
| Age 50 | $861.88 | $796.27 | $972.36 |
| Age 60 | $1,308.63 | $1,208.93 | $1,477.61 |
Health Insurance Premiums by Company
Each insurance company decides how much to charge its customers. Prices can vary between companies, so you’ll need to look closely at what each one offers to choose the right plan for you. Consider the pros and cons of each plan. For example, a review by Investopedia found that Kaiser Permanente has the lowest monthly costs, but it’s not available in many states. On the other hand, UnitedHealthcare has some of the highest premiums but some of the lowest deductibles.
The following table shows the average rates paid by a 30-year-old individual with a benchmark (second-lowest-cost silver) marketplace plan.
| Company | Monthly Cost |
|---|---|
| Ambetter | $450.93 |
| Blue Cross Blue Shield | $561.47 |
| Molina Healthcare | $455.57 |
| Oscar Health | $464.85 |
| Aetna | $553.30 |
| UnitedHealthcare | $516.64 |
| Cigna | $522.18 |
| Kaiser Permanente | $438.58 |
Health Insurance Premiums by Metal Tier
The Affordable Care Act uses metal tiers—bronze, silver, gold, and platinum (plus catastrophic)—to categorize group health plans. In general, with lower-level plans, you’ll pay less each month for your premium. But you’ll pay more when you get medical care in out-of-pocket expenses like coinsurance, copays, and deductibles.
Depending on their income, silver plan enrollees may qualify for extra savings, known as cost-sharing reductions, which will lower their deductible, copays, coinsurance, and out-of-pocket maximum.
| Member Age | Average Catastrophic Monthly Cost | Average Bronze Monthly Cost | Average Silver Monthly Cost | Average Gold Monthly Cost | Average Platinum Monthly Cost |
|---|---|---|---|---|---|
| Age 21 | $286.02 | $347.89 | $472.88 | $510.55 | $925.03 |
| Age 27 | $299.75 | $364.60 | $496.84 | $536.50 | $988.49 |
| Age 30 | $324.63 | $394.87 | $537.66 | $580.55 | $1,064.12 |
| Age 40 | $365.54 | $444.62 | $605.08 | $653.33 | $1,193.39 |
| Age 50 | $510.83 | $621.35 | $845.82 | $913.28 | $1,671.11 |
| Age 60 | $776.26 | $944.19 | $1,284.45 | $1,386.83 | $2,526.48 |
Health Insurance Premiums by State
In 2025, the states with the highest average marketplace plan premiums are Vermont, Alaska, and West Virginia. The states with the lowest premiums are New Hampshire, Minnesota, and Maryland. There are many reasons why costs might be higher or lower in different states, such as:
- A smaller number of health insurance companies to choose from
- The average age of people with insurance in the state
- The size of the state’s population
- The specific rules each state has about insurance
| State | Average Monthly Benchmark Premium for a 40-Year-Old |
|---|---|
| Alabama | $535 |
| Alaska | $1,045 |
| Arizona | $410 |
| Arkansas | $458 |
| California | $512 |
| Colorado | $463 |
| Connecticut | $693 |
| Delaware | $534 |
| District of Columbia | $578 |
| Florida | $515 |
| Georgia | $493 |
| Hawaii | $493 |
| Idaho | $436 |
| Illinois | $474 |
| Indiana | $382 |
| Iowa | $429 |
| Kansas | $513 |
| Kentucky | $442 |
| Louisiana | $524 |
| Maine | $546 |
| Maryland | $365 |
| Massachusetts | $447 |
| Michigan | $404 |
| Minnesota | $363 |
| Mississippi | $485 |
| Missouri | $489 |
| Montana | $554 |
| Nebraska | $600 |
| Nevada | $414 |
| New Hampshire | $325 |
| New Jersey | $492 |
| New Mexico | $515 |
| New York | $790 |
| North Carolina | $507 |
| North Dakota | $537 |
| Ohio | $441 |
| Oklahoma | $501 |
| Oregon | $510 |
| Pennsylvania | $461 |
| Rhode Island | $425 |
| South Carolina | $471 |
| South Dakota | $619 |
| Tennessee | $516 |
| Texas | $489 |
| Utah | $547 |
| Vermont | $1,277 |
| Virginia | $372 |
| Washington | $434 |
| West Virginia | $919 |
| Wisconsin | $495 |
| Wyoming | $871 |
Source: KFF
Health Insurance Premiums by Family Size
Adding your spouse to your health insurance can often make it more expensive. In fact, if you and your spouse both have insurance from your jobs, it might be cheaper to keep your own separate plans. Adding a child to your health insurance will also increase your costs.
| Family Type | Monthly Cost |
|---|---|
| Couple, age 30 | $1,075.32 |
| One adult, age 30, and one child | $895.65 |
| One adult, age 30, and two children | $1,253.63 |
| Couple, age 30, and one child | $1,433.31 |
| Couple, age 30, and two children | $1,791.29 |
| Couple, age 30, and three or more children | $2,149.28 |
Deductibles, Co-Pays, and Out-of-Pocket Maximums
Your premiums are not the only cost to consider when choosing a health insurance plan. You’ll also need to consider your out-of-pocket costs. These consist of the following:
- Deductible: This is the amount you’ll pay for covered services before insurance picks up the rest. The average annual deductible for employer-sponsored health plans ranges from just over $1,000 to over $2,600. You can often save on premiums by picking a plan with a higher deductible.
- Copay: This is a flat-rate fee to see your provider or pick up a prescription. A typical copay is about $25 to $40 for these services.
- Coinsurance: Some plans require enrollees to pay coinsurance instead of a copay. Coinsurance is a percentage of the covered amount, typically about 20%.
- Out-of-pocket maximum: After reaching your annual out-of-pocket maximum, your insurer will pay 100% of the cost of covered services for the rest of the year. Plans with a lower out-of-pocket maximum tend to have higher premiums.
Finding Affordable Health Insurance
To find health insurance you can afford, first think about your health needs. If you’re generally healthy and don’t expect to need a lot of medical care, you might be OK with a plan that has high deductibles and other out-of-pocket costs. But if you have more serious health needs, it might be cheaper in the long run to pay higher monthly premiums so you can avoid high out-of-pocket costs.
If you’re signing up for an ACA plan, enter your household income when prompted to get a predetermined estimate of your eligibility for the premium tax credit. This can reduce your premiums as you pay them in the form of an advance premium tax credit or result in a tax refund.
The Bottom Line
Health insurance costs can vary wildly from person to person, but they will generally be a function of your or your family’s needs. Knowing what health insurance might cost can help you decide what coverage is best for you. Because you’ll be able to choose between higher premiums and lower out-of-pocket costs or lower premiums and higher out-of-pocket costs, you can allocate your money to health care in the most affordable way.
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