Average Cost Of Health Insurance (2016)

Health Insurance premiums have risen dramatically over the past decade. In the past, insurers would price your health insurance based on any number of factors, but after the Affordable Care Act, the number of variables that impact your health insurance costs have been reduced dramatically. We conducted a study to look at how health insurance premiums vary based on these characteristics. In our data we illustrate these differences by using an example 21 year old. Older consumers will see higher rates with 30 year olds paying 1.135 times more, 40 year olds paying 1.3 times more, 50 year olds paying 1.786x and 64 year olds paying 3 times the cost listed.

Average Cost Of Health Insurance

One of the primary factors in your health insurance costs depends on where you live. In this first table we look at health insurance premiums and how they differ based upon the state you reside in. 

Monthly and Annual Health Insurance Rates by State (Age 21)

State Monthly Health Insurance Annual Health Insurance % Change vs Avg.
Alaska $426 $5,112 73%
Alabama 217 2,604 -12%
Arkansas 236 2,832 -4%
Arizona 247 2,964 0%
Delaware 255 3,060 4%
Florida 285 3,420 16%
Georgia 253 3,036 3%
Iowa 251 3,012 2%
Illinois 244 2,928 -1%
Indiana 276 3,312 12%
Kansas 196 2,352 -20%
Louisiana 284 3,408 15%
Maine 271 3,252 10%
Michigan 251 3,012 2%
Missouri 254 3,048 3%
Mississippi 234 2,808 -5%
Montana 210 2,520 -15%
North Carolina 270 3,240 10%
North Dakota 242 2,904 -2%
Nebraska 243 2,916 -1%
New Hampshire 246 2,952 0%
New Jersey 307 3,684 25%
New Mexico 211 2,532 -14%
Nevada 279 3,348 13%
Ohio 258 3,096 5%
Oklahoma 209 2,508 -15%
Oregon 206 2,472 -16%
Pennsylvania 231 2,772 -6%
South Carolina 249 2,988 1%
South Dakota 235 2,820 -4%
Tennessee 225 2,700 -9%
Texas 239 2,868 -3%
Utah 180 2,160 -27%
Virginia 222 2,664 -10%
Wisconsin 280 3,360 14%
West Virginia 242 2,904 -2%
Wyoming 366 4,392 49%

Average Health Insurance Premiums By Metal Tier

Health Insurance plans are separated into different metal tiers based on the proportion of health care costs the insurance plan is expected to cover. Bronze plans cover the smallest proportion, having the highest deductibles, copays and coinsurance. On the other end of the spectrum, Platinum plans offer the greatest amount coverage expected to cover 90% of all costs. The average rates paid for insurance plans are inversely related to the amount of coverage they provide, with platinum plans being the most expensive and bronze / catastrophic plans being the cheapest. The following table shows the average rates a 21 year old would pay for insurance based on plans in the different tiers. Older consumers would see their plans increase according to the age scale set by the federal guidelines.

Monthly and Annual Health Insurance Rates by Metal Tier (Age 21)

Type Monthly Premium Annual Premium
Catastrophic $167 $1,999
Bronze $201 $2,411
Silver $247 $2,961
Gold $291 $3,487
Platinum $363 $4,360

Average Rates By Plan Type

Another distinction between plans that can change the rates you pay, is the type of network the plan uses. Depending on whether the plan is a PPO, HMO, EPO or POS plan, consumers will have access to the health care providers managed in different ways. HMOs tend to be the most restrictive about which doctors you can see and what you must do to see them. This usually means that the insurers save on your cost of care and thereby provide lower premiums.

Monthly and Annual Health Insurance Rates by Plan Type (Age 21)

Type Monthly Rate Annual Rate
HMO $230 $2,764
POS $244 $2,928
PPO $251 $3,019
EPO $254 $3,056