How Much Does Health Insurance Cost?

How Much Does Health Insurance Cost?

Here are some examples of estimated health insurance costs:

*if you’re 40 years old and married with two kids

Let’s break down what goes into those costs—and how to figure out where you’ll land.

What Affects Health Insurance Premiums?

Health insurance companies can legally consider only five factors when determining your premiums for a marketplace plan: age, location, tobacco use, individual versus family enrollment, and plan category. (We’ll take a closer look at age, location and plan types later.)

• Age: As you get older, you’ll generally pay more for marketplace health insurance.

• Location: Some states are more affordable when it comes to health insurance, and others are more expensive. For example, the average premium in New Hampshire is just $401, but it’s a whopping $1,299 in Vermont.⁷

• Tobacco use: If you use tobacco, health insurance companies can charge you more.

• Individual versus family enrollment: The more folks you have on your plan, the more expensive it’ll be.

• Plan category: The price of your insurance plan will depend on the level of coverage you choose—catastrophic, bronze, silver, gold or platinum. Within those five plan categories are some other, more specific types of insurance plans that we’ll go over later.

If it’s not on that list, insurance companies can’t consider it when determining how much you’ll pay for a policy. That includes your gender, medical history (preexisting conditions), and current health.

What Other Factors Affect Your Health Insurance Costs?

Other circumstances, such as your income level and the size of your employer, can also influence your health insurance costs. Here’s how:

• Your income level: When you buy a marketplace health insurance plan, you may qualify for a subsidy (government financial assistance) to help lower your monthly premium. The amount depends on your income. The less you make, the more the government will cover. But if you have access to affordable health insurance through your employer, you may not qualify.  

• Your employer’s size: If you’re using an employer-sponsored health plan, the size of your employer can influence the amount you pay. The average annual employee contribution to premiums at a small company is $8,889, while it’s $6,227 at a large company.⁸

How Much Does Health Insurance Cost by Plan Type, Age, Location and Family Size?

We’ve seen a snapshot of the variables that affect the cost of health insurance. Now let’s take a closer look at how much your own premiums will cost in terms of plan type, age, location and family size.

What are average health insurance premiums by plan type?

Marketplace health insurance plans have five levels of coverage to choose from:

• Catastrophic
• Bronze
• Silver
• Gold
• Platinum

These plan tiers let you choose how costs are shared between you and your insurance company. They don’t affect the qualify of care you receive.

The two least common plans are catastrophic and platinum since they’re on the extreme ends of the spectrum. Catastrophic plans have the lowest premiums and provide bare-minimum coverage—but they also have the highest out-of-pocket costs. With platinum plans, the insurance company pays about 90% of your health care expenses, but those plans also have the highest premiums.⁹

Most folks go for a bronze, silver or gold tier plan. Bronze plans give you lower monthly premiums, but more out-of-pocket expenses. Silver offers lower deductibles (the amount you have to pay before the insurance company steps in) and out-of-pocket costs than bronze, but you’ll pay more in monthly premiums. Gold plans have high monthly premiums but low  deductibles, coinsurance and out-of-pocket costs.

Here’s how average monthly premiums and cost sharing compare across bronze, silver and gold marketplace plans:

• Premiums shown are national averages for the lowest-cost marketplace plans in each tier.
• Actual premiums vary based on your age, location, tobacco use and subsidy eligibility.
• “Insurance pays” percentages are risk-based values defined by the Affordable Care Act (ACA).

What is the average cost of health insurance by age?

Age is another factor that affects how much you’ll pay for health insurance. As you age, your health insurance premiums will go up (along with your BMI).

Here’s a look at just how much you can expect your insurance costs to rise during your lifetime.

Rate estimates are based on the average marketplace silver plan premiums for a single adult with no dependents who earns $60,000, doesn’t receive financial assistance, and doesn’t use tobacco.

How does the average cost of health insurance compare across states?

Marketplace health insurance costs vary a lot by state. In 2026, the average silver plan premium ranged from about $401 per month in New Hampshire to nearly $1,300 in Vermont.

What is the average cost of health insurance for a family of 4?

Health insurance costs for a family of four depend on the ages of the parents and children. To give you an idea of what your family might pay, here are some examples based on families with a $100,000 household income who don’t use tobacco or receive financial assistance.

*Under the Affordable Care Act (ACA), children can remain on a parent’s health insurance plan until age 26. Estimates for families with children who have aged out assume lower costs for fewer covered family members.

Marketplace vs. Employer Insurance: Which Is Cheaper?

If you or your spouse has access to an employer-sponsored health insurance plan through a group plan, you’ll likely pay much less than you would for a marketplace plan. In 2024, folks using a company health benefit paid about $114 a month for individual coverage and about $525 a month for family coverage.¹⁵

What Does Health Insurance Cost in Real Life?

Let’s check out a few real-life examples of how much health insurance costs on the marketplace.

Single Adult (Age 28)

• About $350–540 per month¹⁶
• With a government subsidy, potentially under $200/month

Family of 4 (Parents Age 40)

• About $1,400–1,600 per month
• With a subsidy, potentially as low as a few hundred dollars a month, depending on household income 

Self-Employed Individual

• About $600 or more per month
• With subsidy: Potentially under $200 per month, depending on your income
• Many self-employed people choose a high-deductible health plan (HDHP) to lower their monthly premium.

What Types of Health Insurance Plans Can I Choose From?

You can choose from a range of plans that offer different levels of flexibility when it comes to choosing providers, getting specialist referrals, and receiving out-of-network care.

Shopping for a health insurance plan can sometimes feel like being in a grocery store staring at rows of the same product (so many breakfast cereal options!) for what seems like hours—only less exciting and way more expensive. But comparing plans could save you money. That’s because the type of plan you choose also affects both your costs and your coverage.

Here are the types of plans and networks you can shop for in the health insurance marketplace:

How Can I Lower My Health Insurance Costs?

Here are four ways to lower your monthly costs:

• Choose a high-deductible health plan (HDHP) and use a Health Savings Account (HSA) for tax savings.
• See if you qualify for marketplace subsidies.
• Compare plans annually during open enrollment.
• Stay in network to avoid higher costs.

How Do I Get the Best Health Insurance?

If you’re looking to buy health insurance on your own, you could just go to the websites of major health insurance companies in your area and see what plans they offer. But let’s face it: That’s a ton of work. Choosing the right health insurance plan for you or your family is a daunting task, and you probably have better things to do with your time than sift through endless health insurance quotes.

That’s why we recommend our friends at Health Trust Financial for your health insurance needs. They’re RamseyTrusted^® and will connect you with an agent who can look at your situation and compare rates so you get the coverage you need. They’ll help you understand the marketplace or even what your employer is offering. And the best part? It’s free to connect!