When managing a budget, it’s important to consider all the expenses we encounter in our daily lives. From rent and utilities to groceries and credit card bills, we strive to allocate funds wisely.
However, estimating the cost of healthcare can be a bit more challenging. In this comprehensive guide, we will explore the various factors that influence health insurance premiums, allowing you to gain a better understanding of how much does Health Insurance cost per month.
Health Insurance Cost for One Person
The cost of health insurance varies by state and can be influenced by subsidies. In 2022, the average national monthly cost for an individual enrolled in an Affordable Care Act (ACA) Marketplace plan without subsidies was $438. It’s worth noting that premiums can fluctuate based on several factors, which we’ll delve into further.
Factors Determining Health Insurance Premiums
Age
Age plays a crucial role in determining health insurance premiums in most states. While states like New York and Vermont do not consider age when determining premiums, it remains a significant contributing factor elsewhere. Insurance companies often use 21 as the base age and adjust premium costs upward for individuals in their thirties, forties, fifties, and sixties. Notably, premiums tend to more than double the base rate around the age of 53.
Tobacco Use
The use of tobacco products also affects monthly health insurance costs. Insurance companies have the authority to charge smokers up to 50% more than non-tobacco users. Although some states restrict insurance carriers from imposing the maximum surcharge, tobacco use still influences pricing. Quitting tobacco can not only improve your health but also lead to potential cost savings on your health insurance premiums.
Location
Geographical location plays a significant role in determining health insurance premiums due to the level of competition in a particular area. In densely populated regions, where competition among insurance companies is fierce, pricing may be more competitive. Conversely, rural areas often have limited insurance options, resulting in higher premiums for residents.
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Plan Category
The choice of health insurance plan is another important factor in determining monthly costs. Health plans are categorized into metal tiers: Bronze, Silver, Gold, Platinum, and Catastrophic. Each tier carries different premiums based on the percentage of overall healthcare costs they cover. Additionally, premiums are influenced by factors such as deductibles, copays, coinsurance, and the number of family members covered by the plan.
How Much Does Health Insurance Cost per Month in Each State With a Subsidy?
The cost of health insurance per month in each state with a subsidy varies depending on your income, family size, and the type of plan you choose. The average cost of a silver plan with a subsidy is $66.72 per month in 2023. However, your actual cost may be lower or higher depending on your individual circumstances.
Here is a table of the average cost of a silver plan with a subsidy by state:
| State | Major County | After Subsidy in 2021 | After Subsidy in 2022 |
|---|---|---|---|
| Alabama | Jefferson | $43 | $77 |
| Alaska | Anchorage | $38 | $0 |
| Arizona | Maricopa | $75 | $82 |
| Arkansas | Pulaski | $78 | $71 |
| California | Los Angeles | $83 | $68 |
| Colorado | Denver | $81 | $78 |
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How much does Health Insurance cost per Month in Each State
The national average premium for a benchmark plan in 2022 was $438, as reported by the Kaiser Family Foundation. A benchmark plan refers to the average premium of the second-lowest-cost silver plan in each state. However, it’s important to note that this average does not account for any cost reductions through subsidies. Health insurance rates can vary by location, so it’s essential to consider the specific rates applicable to your area.
| State | Average Monthly Premium | Percent Change |
|---|---|---|
| Alabama | $442 | -1.4% |
| Alaska | $864 | 5.5% |
| Arizona | $484 | 1.3% |
| Arkansas | $431 | 0.2% |
| California | $643 | 3.1% |
| Colorado | $526 | 3.0% |
| Connecticut | $617 | 5.0% |
| Delaware | $522 | 2.5% |
| Florida | $484 | 1.4% |
| Georgia | $452 | 1.6% |
| Hawaii | $675 | 2.2% |
| Idaho | $477 | 1.6% |
| Illinois | $571 | 2.6% |
| Indiana | $471 | 1.9% |
| Iowa | $474 | 2.3% |
| Kansas | $449 | 1.0% |
| Kentucky | $453 | 1.7% |
| Louisiana | $484 | 2.2% |
| Maine | $501 | 2.3% |
| Maryland | $585 | 3.3% |
| Massachusetts | $675 | 3.7% |
| Michigan | $495 | 2.4% |
| Minnesota | $490 | 2.0% |
| Mississippi | $428 | 0.5% |
| Missouri | $471 | 2.0% |
| Montana | $493 | 1.8% |
| Nebraska | $471 | 1.9% |
| Nevada | $516 | 2.2% |
| New Hampshire | $404 | -0.7% |
| New Jersey | $635 | 2.8% |
| New Mexico | $482 | 1.9% |
| New York | $688 | 3.6% |
| North Carolina | $461 | 1.7% |
| North Dakota | $476 | 2.0% |
| Ohio | $481 | 2.0% |
| Oklahoma | $476 | 2.1% |
| Oregon | $547 | 3.0% |
| Pennsylvania | $538 | 2.6% |
| Rhode Island | $548 | 2.9% |
| South Carolina | $463 | 1.8% |
| South Dakota | $477 | 2.0% |
| Tennessee | $471 | 2.0% |
| Texas | $483 | 1.5% |
| Utah | $508 | 2.2% |
| Vermont | $552 | 3.1% |
| Virginia | $432 | -0.7% |
| Washington | $566 | 2.9% |
| West Virginia | $864 | 5.5% |
| Wisconsin | $488 | 2.2% |
| Wyoming | $882 | 5.6% |
Conclusion
Understanding the various factors that impact health insurance costs is crucial when planning your budget. Age, tobacco use, location, and plan category are all significant determinants. By considering these factors and exploring available options, you can make informed decisions about your health insurance coverage. Remember, research and comparison shopping are essential to find a plan that aligns with your needs and budget.
Disclaimer: The information provided here is for educational purposes only and should not be considered as financial or healthcare advice. For specific inquiries regarding health insurance, it is recommended to consult with a licensed insurance professional or visit official healthcare websites.
