Insurance 101

Average Health Insurance Cost For Individuals & Families

Today we’ll show you the average health insurance cost by age, state, company, plan type, and tier.

How much does individual health insurance cost?

It is critical to have some form of insurance that will cover you in the event that you incur expensive medical bills. There are a number of things that might significantly impact the cost of an individual's monthly premium for health insurance.

The monthly premium for an individual policy in the United States is approximately $560 on average.

How much does health insurance cost for families?

Health insurance is critical because it can protect families, not just the policyholder. 

The cost of health insurance for families can vary greatly, depending on factors such as location, size of the family, and the type of coverage chosen. As healthcare expenses continue to rise, understanding the various options and finding the most affordable plan for your family can be essential in ensuring proper medical care and financial stability.

Also Read: How Many Americans Are Uninsured? Health Insurance Statistics

Many families are turning to employer-sponsored methods, government assistance programs, or shopping in the healthcare marketplace to find a plan that fits their needs and budget. By exploring different coverage options, comparing premiums, and understanding deductibles and out-of-pocket costs, families can make informed decisions and ultimately find a health insurance plan that provides security and peace of mind.

The average monthly premium for health insurance for a household of four is from $1000 to $2000. 

What is the average cost of health insurance by age?

As we grow older, our healthcare needs tend to increase, and so does the cost of health insurance. But don't fret, because thanks to the Affordable Care Act (ACA), there's a limit to how much more seniors have to pay compared to their younger counterparts. Your insurance cost can't be more than triple what a 21-year-old's would be!

When MoneyGeek crunched the numbers, they found some striking differences in premiums. For example, an 18-year-old would pay about $396 per month, a 50-year-old faces $781, and a 60-year-old would be charged $1,187. But remember, these numbers don't consider the tax credits or subsidies available to particular groups, especially those with low incomes who have taken early retirement or reduced their working hours.

So, while aging and healthcare costs may go hand in hand, there's some relief in knowing that a safety net is in place to ensure that health insurance costs remain affordable for seniors.

How much does health insurance cost by state?

Did you know your location can significantly affect your private health insurance costs? Monthly premiums can vary greatly, with the oh-so-lovely Virginia boasting the lowest average at an excellent $390 for a 40-year-old. 

Unfortunately, life isn't as sweet in West Virginia, where that same person could be paying a whopping $864 monthly! 

This variation is due to a melting pot of factors, such as the intensity of competition among insurance providers and the population's overall health. In states with fiercer rivalry or pricier medical institutions, insurers must charge more to keep their heads above water. 

The average cost of health insurance by plan type

Rates fluctuate based on the plan's colorful categories: HMO, PPO, EPO, or POS. Each type boasts its unique way of managing access to healthcare providers. Don't be surprised if you find HMOs playing hard to get, keeping a tight leash on which doctors to visit.

Cost of Plan Type Breakdown in 2023

  • The average cost of an HMO plan is $480 monthly
  • The average cost of a PPO plan is $576
  • The average cost of an EPO plan is $507

What does each plan offer?

  • HMO - Monthly premiums are usually lower in cost, copays, and deductibles compared to other plans. You will choose from specific doctors and hospitals that the insurance group selects, which helps keep the cost of health care low. When you sign up for an HMO plan, you will choose your PCP or Primary Care Physician from the list of physicians provided to you. To see a specialist, you will need a referral from your PCP.
  • PPO - If you're willing to invest a little more, a Participating Provider Option (PPO) may be the perfect match for you and your loved ones. With a PPO plan, you can select your preferred doctors, hospitals, and healthcare providers, making your healthcare journey a tailor-made experience. Just be prepared for higher monthly premiums and additional out-of-pocket expenses, like copays, coinsurance, and deductibles.
  • EPO - This plan is considered a type of primary medical insurance and will provide minimum essential coverage for preventative health care, hospitalization, and illness. You must use network providers if you have an EPO health plan, but you don't need a referral to see a specialist. You might need to obtain prior authorization with EPO health insurance. This implies that the specialized visit must first be reviewed and approved by the EPO. 

The Average Cost of Health Insurance By Tier

Bronze (and Extended Bronze), Silver, Gold, and Platinum are the metallic tiers into which the health insurance marketplace's plans are divided.

According to MoneyGeek's analysis, Bronze plans had the lowest average monthly rates for a 40-year-old consumer (except for Catastrophic policies, which have tight qualifying requirements and provide little coverage). In contrast, the typical Platinum plan has a monthly cost of $763.

Breakdown of Average Cost By Tier (based on age 40)

  • The average cost of a Bronze plan is $417 monthly.
  • The average cost of a Catastrophic plan is $328 monthly.
  • The average cost of an Expanded Bronze plan is $440 monthly.
  • The average cost of a Gold plan is $585 monthly.
  • The average cost of a Platinum plan is $763 monthly.
  • The average cost of a Silver plan is $559 monthly.

How much does private health insurance cost?

Individual health insurance or Affordable Care Act coverage are alternative names for private health insurance. Thus, the fees shown on this page apply to the same coverage regardless of its designation. You purchase private health insurance if you do not enroll in a government-sponsored plan such as Medicare or Medicaid.

For a 40-year-old on a silver plan, the average monthly cost of private health insurance is $560 nationwide.

The average cost of private health insurance varies depending on several variables, including the method of plan purchase. By purchasing private health insurance through a state or federal exchange, you may be eligible for subsidies to assist with monthly premiums and other insurance expenses.

You may also purchase private health insurance straight from an insurance company without the assistance of an agent or broker. These policies, frequently referred to as "off-exchange," include Affordable Care Act plans and short-term medical insurance, and plans outside the exchange are ineligible for cost-saving incentives. Prior to making a purchase, it is prudent to examine on-exchange and off-exchange programs to see which choice will save you money.

Factors that impact the cost of health insurance


Age is one of the most essential aspects that play a role in determining the price of health insurance. In most cases, persons who are younger will have lower premium costs for their health insurance than individuals who are older. This is due to the fact that persons who are younger tend to be healthier overall and have a lesser risk of getting various health issues.


Gender is an additional aspect that can have an effect on the price of health insurance. In most cases, the premiums women pay for their health insurance are higher than those paid by men. This is due to the fact that women have a greater propensity to develop specific health diseases, such as breast cancer and ovarian cancer than males do.

Status of One's Health

The individual's current state of health is another component that goes into determining the cost of health insurance. Those who are healthier than average will typically have lower premiums for their health insurance than those people who are sicker than average. This is due to the fact that healthy people have a decreased probability of developing health problems and, as a result, require less medical treatment overall.


Location is yet another component that can have an effect on the price of health insurance. Health insurance premiums are often more expensive for people who live in regions with a higher cost of living than those who live in regions with a lower cost of living. This is because the cost of living in these regions is higher. The reason for this is that regions with a high cost of living typically have prices for medical treatment and prescription pharmaceuticals that are higher than in other areas.


Occupation is another variable that can have an effect on the expense of health insurance. Those who work in dangerous professions, such as construction or mining, will often pay a higher premium for their health insurance than those who work in office positions because of the higher risk involved in their jobs. This is due to the fact that those working in dangerous professions are more likely to get injuries, and as a result, they require a greater quantity of medical treatment.

How can I find an affordable health insurance plan that meets my needs?

Navigating the world of health insurance can feel daunting, yet finding an affordable plan that meets your needs is essential for maintaining your overall well-being. To begin, assess your personal circumstances and medical requirements, keeping in mind the coverage you want for routine checkups, emergency care, and specialized treatments. 

Next, compare different health insurance providers and their plans, focusing on premium costs, deductibles, copayments, and out-of-pocket maximums. Additionally, consider enrolling in government-backed health insurance programs, such as Medicaid or the Affordable Care Act's Health Insurance Marketplace, often offering cost-effective options for individuals and families. Remember those open enrollment periods apply for some insurance programs, so be aware of deadlines and thoroughly research any eligibility criteria. By proactively seeking out information and tailoring your choices to your unique needs, you'll ultimately find a suitable and affordable health insurance plan that will grant you peace of mind and protection for your health.

How can I lower my health insurance costs?

Bringing down the price of health insurance can significantly reduce the amount of stress caused by finances and enhance overall health. One of the critical approaches that may be taken is to perform extensive research and comparison between various insurance providers, seeking a policy that best satisfies your requirements while staying within your financial restrictions. 

Another important consideration is one's ability to keep their health in good standing; practices such as regular exercise, eating a healthy, well-rounded diet, and avoiding risky behaviors such as smoking can help reduce the likelihood of developing chronic conditions, which can result in lower insurance premiums. In addition, investigating extra resources such as employer-sponsored wellness programs, government-sponsored low-income health insurance, high-deductible plans with related health savings accounts, and so on can help save money throughout the course of a policy's lifetime. 

Remember that the two most important things you can do to keep your health insurance prices in check are to stay informed and make bold choices.


Despite the average cost of health care across the nation, it is still essential that individuals take care of their health to ensure they remain well and prevent any disease from developing. There are numerous free resources out there available for health screenings and essential information on diet, exercise, and self-care. Knowing the individual cost of health care in one's area is just as important as understanding the national average price. 

Finding a health plan that fits an individual's specific needs can go a long way to getting them affordable coverage for any medical issues. Ultimately, one should aim to stay healthy by exercising regularly, eating nutritious foods, maintaining proper hygiene, and seeing their doctor regularly for preventive care measures like check-ups and immunizations. Taking advantage of these routine appointments helps keep individuals feeling their best so they can more relatedly enjoy life's pleasures.

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