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Average Cost of Health Insurance (2024)

The average monthly cost of a Silver plan for a 40-year-old in the U.S. is $584. That's a 4% increase for 2024.

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How much is health insurance for 2024?

Location is one of five factors insurers can consider when setting health care premiums. This is because of competition, state and local rules, and cost of living.

How much does health insurance cost in my state?

State
2024 cost
2023 cost
% change
National$584$5604%
Alabama$584$591-1%
Alaska$948$82215%
Arizona$517$569-9%
Arkansas$461$4561%
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Monthly policy premiums are for a 40-year-old on a Silver plan.

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The average cost of health insurance in Washington, D.C., for a 40-year-old on a Silver plan is $538 per month — up 13% from $475 in 2023. D.C. was excluded from the national average.


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How much did health insurance rates change for 2024?

From 2023 to 2024, health insurance rates across the nation increased by 4%. Oregon saw the largest year-over-year jump in health insurance costs for a 40-year-old on a Silver plan — increasing by 17%. Including Oregon, 35 states saw their average rates increase between 2023 and 2024.

Year-over-year rates decreased the most in South Dakota and Arizona, where they fell by 10% and 9%, respectively. Overall, 12 states experienced a decrease in health insurance premiums.

Average health insurance cost by tier

Health insurance plans are separated into tiers based on the proportion of health care costs the insurance plan is expected to cover.

Silver plans fall around the middle, with moderate deductibles, copays and coinsurance. Catastrophic and Bronze plans offer the smallest amount of coverage, while Platinum plans offer the greatest.

The average rates paid for health insurance plans generally are inversely related to the amount of coverage they provide, with Platinum plans being the most expensive and Catastrophic and Bronze plans often being the cheapest. The following table shows the average rates a 40-year-old would pay for individual health insurance based on the tier. Older people would see their rates increase according to the age scale set by federal and state guidelines.

Monthly health insurance cost by tier

Tier
2024 rate
2023 rate
% change
Catastrophic$335$3321%
Bronze$462$4405%
Silver$584$5604%
Gold$641$6046%
Platinum$813$73710%

Monthly policy premiums are for 40-year-olds. Expanded Bronze was omitted due to a lack of data across states.

Average health insurance rates by plan type

Another distinction that can change the rates you pay is the type of network the plan uses.

Depending on whether the plan is a health maintenance organization (HMO), preferred provider organization (PPO), exclusive provider organization (EPO) or point of service (POS), access to health care providers will be managed in different ways.

HMOs tend to be the most restrictive about which doctors you can see and what you need to do to see them. This usually means that the insurers save on your cost of care and provide lower premiums.

Monthly health insurance cost by plan type

Type
2024 rate
2023 rate
% change
HMO$512$4807%
PPO$613$5767%
EPO$526$5074%

Monthly policy premiums are for 40-year-olds. POS plans were omitted due to a lack of data across states.

Cost of private health insurance

Private health insurance is also called individual health insurance, or Affordable Care Act coverage. Thus, the costs provided on this page apply to the same type of coverage, regardless of the name. If you're not enrolling in a government-backed plan like Medicare or Medicaid, you’re buying private health insurance.

Nationally, the average monthly cost of private health insurance is $584 for a 40-year-old on a Silver plan.

The average cost of private health insurance varies based on several factors, including how you buy your plan. When you buy private health insurance through a state or federal exchange, you could be eligible for subsidies to help with monthly plan payments and other insurance costs.

You can also buy private health insurance directly from an insurance company through an agent or broker. These plans are sometimes called "off-exchange" policies and include Affordable Care Act plans. Off-exchange plans don’t qualify for cost-saving subsidies. Before you buy, it's a good idea to compare on- and off-exchange plans to see which option will save you money.

Factors that impact health insurance rates

For a particular health insurance plan, the cost of coverage is determined by certain factors set by law. States can limit the degree to which these factors impact your rates. For instance, some states like California and New York don't allow the cost of health insurance to differ based on tobacco use.

  • Age: The health care cost per person covered by a policy is set according to their age, with rates increasing as the individual gets older. Children through age 14 will cost a flat rate to add to a health plan, but premiums typically increase annually beginning at age 15.
  • Where you live: Health insurance companies determine the set of policies offered and the cost of coverage based on the state and county in which you live. A resident of Miami-Dade County in southern Florida, for instance, may pay lower rates for the same policy than a resident of Jackson County in the Florida panhandle.
  • Smoking/tobacco use: If you smoke, you could pay up to 50% higher rates for health insurance, though the state determines the maximum increase.
  • Number of people insured: The total cost of a health plan is set according to the number of people covered. For example, a family of three, with two adults and a child, would pay a much higher monthly health insurance premium than an individual.

As noted earlier, your tier and plan type also impact health insurance premiums.

Frequently asked questions

For 2024, the average cost of health insurance is $584 a month for a Silver plan. However, costs will vary by location. Insurance is expensive in Alaska and Vermont, averaging more than $900 a month. States with cheaper health insurance include New Hampshire and Maryland, averaging less than $400 a month. Compare quotes in your state.

The average cost of health insurance increased by 4% between 2023 and 2024.

A Silver health insurance plan costs an average of $584 a month on the health insurance marketplace. However, subsidies can lower your monthly costs. If you earn $30,000 a year, a Silver plan could cost $56 a month. If you earn $45,000, the average cost is $233.

The cost of private health insurance varies based on factors such as your age and where you live. For example, a 40-year-old in Alaska pays an average of $948 a month for a Silver plan, while the same plan in New Hampshire costs an average of $373. Your cost also depends on the type of plan you buy, such as an HMO or PPO, and the level of coverage.

Methodology

Health insurance premiums and plans in the above report were aggregated from public use files (PUFs) on the Centers for Medicare & Medicaid Services (CMS) government website. Plans and providers for which county-level data was included in the CMS Crosswalk file were used in our analysis; those excluded from this data set may not appear. Separately, data was aggregated from the websites of state-run marketplaces that don’t utilize the federal marketplace.

Using the rates and premiums for each plan, averages were calculated for various variables. Average costs per state are for Silver plans for 40-year-olds.

Data for the Catastrophic tier and plan types is averaged from the 32 states that use HealthCare.gov.

Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.