Average Cost Of Health Insurance (2018)

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 InsuranceAnnual Health Insurance% Change vs Avg.

Alaska

$426$5,11273%

Alabama

2172,604-12%

Arkansas

2362,832-4%

Arizona

2472,9640%

Delaware

2553,0604%

Florida

2853,42016%

Georgia

2533,0363%

Iowa

2513,0122%

Illinois

2442,928-1%

Indiana

2763,31212%

Kansas

1962,352-20%

Louisiana

2843,40815%

Maine

2713,25210%

Michigan

2513,0122%

Missouri

2543,0483%

Mississippi

2342,808-5%

Montana

2102,520-15%

North Carolina

2703,24010%

North Dakota

2422,904-2%

Nebraska

2432,916-1%

New Hampshire

2462,9520%

New Jersey

3073,68425%

New Mexico

2112,532-14%

Nevada

2793,34813%

Ohio

2583,0965%

Oklahoma

2092,508-15%

Oregon

2062,472-16%

Pennsylvania

2312,772-6%

South Carolina

2492,9881%

South Dakota

2352,820-4%

Tennessee

2252,700-9%

Texas

2392,868-3%

Utah

1802,160-27%

Virginia

2222,664-10%

Wisconsin

2803,36014%

West Virginia

2422,904-2%

Wyoming

3664,39249%
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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 PremiumAnnual 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 RateAnnual Rate

HMO

$230$2,764

POS

$244$2,928

PPO

$251$3,019

EPO

$254$3,056

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