Best Cheap Health Insurance in Michigan 2021
Best Cheap Health Insurance in Michigan 2021
For 2021, the average cost of health insurance in Michigan is $402 per month across all plans, which is a 4% decrease since the 2020 plan year.
The cheapest health insurance in Michigan is the Ambetter Balanced Care 12 (2021) plan. The cheapest Silver plan in most counties, however, is MyPriority HMO Silver 5500 - Telehealth PCP, which is available in 45% of the state's counties. As the price and availability of health insurance vary depending on location and age, we recommend comparing rates from multiple insurers before purchasing a policy.
Cheapest health insurance by metal tier
We recommend using these low-cost health insurance policies as a starting point to determine the costs and benefits you can expect from a given metal tier of coverage.
We compared health insurance plans in Michigan by metal tier in order to determine the cheapest policies available for each level of coverage.
Higher metal tiers of coverage have lower out-of-pocket costs, meaning you'll pay less in the event you need to use your health insurance, but they also come with more expensive premiums.
Compare Health Insurance Quotes in Michigan
In addition to the level of coverage you choose, your age is a significant factor in determining health insurance rates, as premiums get more expensive as you get older. As you can see in the example above, a 40-year-old would pay 28% more than a 21-year-old for a Silver policy, while a 60-year-old would pay 112% more than a 40-year-old for the same policy.
The insurers and health plans available will change depending on the county in which you live, so those listed below may not be offered in your region.
Metal tier | Cheapest plan | Deductible | Maximum out-of-pocket | Monthly cost for a 40-year-old |
|---|---|---|---|---|
| Catastrophic | Blue Cross® Select HMO Value | $8,550 | $8,550 | $200 |
| Bronze | Ambetter Essential Care 1 (2021) | $8,300 | $8,300 | $223 |
| Expanded Bronze | MyPriority HMO Bronze 8550 - St. John Providence Network | $8,550 | $8,550 | $231 |
| Silver | Ambetter Balanced Care 12 (2021) | $3,858 | $6,500 | $292 |
| Gold | Ambetter Base Gold (2021) | $3,500 | $6,000 | $300 |
| Platinum | Sparrow PHP Platinum 500 Exclusive | $500 | $3,000 | $546 |
Finding your best health insurance coverage in Michigan
The best health insurance plan available for you in Michigan will depend upon the county you live in, as this determines which plans are offered, as well as your income.
In each county, you'll be able to choose among metal tiers of coverage, which indicate both a plan's monthly premiums and benefits. Generally, higher metal tier plans have more expensive premiums, but out-of-pocket costs, such as deductibles, copays and coinsurance, are much lower. Lower metal tier health plans, on the other hand, have cheaper monthly rates alongside much higher cost-sharing features.
So, for instance, if you're young and have had no health issues, your net cost would likely be lower with a Silver or Bronze plan, since you're likely to have fewer medical expenses throughout the year. However, if you became ill and needed to be hospitalized, your total expenses may be higher, as you'd need to cover large out-of-pocket costs before your health insurance would provide coverage.
Gold and Platinum plans: Best for high medical costs
Gold and Platinum health plans have the most expensive monthly premiums, but they also offer the cheapest out-of-pocket expenses, such as deductibles and copays. So, if you have high expected medical expenses, such as costly ongoing prescriptions, a higher metal tier policy may be your best choice for health insurance.
Silver plans: Best if you have low income or moderate medical expenses
Silver plans are often the best health insurance option if you're looking for a middle ground to balance affordable premiums and out-of-pocket costs. They also are eligible for cost-sharing reduction (CSR) subsidies for lower-income households, which can help to make your health coverage more affordable.
Bronze and Catastrophic plans: Best for healthy people with emergency savings
Bronze and Catastrophic plans have the cheapest monthly health insurance rates, which make them great choices for young, healthy people with low expected medical costs. We wouldn't recommend these policies unless you have the financial resources to cover the high out-of-pocket expenses in case of an emergency.
Low metal tiers have the highest deductibles, copays and coinsurance, meaning coverage won't be extended until you've covered these costs yourself. Also note that Catastrophic plans aren't available unless you're under the age of 30 or meet certain exemptions, so this option may not be available to you. Catastrophic plans also are not eligible for premium tax credits.
Medicaid
Michigan expanded Medicaid for residents under the Affordable Care Act, so depending on your income, you may qualify for Medicaid or a qualified health plan. However, Michigan is different from other states in that if your household income is greater than the federal poverty level and you enroll in Medicaid, you must contribute 2% of your annual income to a health savings account.
Health insurance rate changes in Michigan
Health insurance providers are required to submit any policy premium, deductible and out-of-pocket maximum changes to federal regulators. This occurs on an annual basis and is the reason that you may see a slight uptick in your health insurance costs.
In 2021, health insurance costs decreased for most plans by an average of 15%, with Platinum plans rising by just 2% since 2020.
Metal tier | 2018 premium | 2020 premium | 2021 premium | Change from 2020 to 2021 |
|---|---|---|---|---|
| Catastrophic | $314 | $371 | $283 | -24% |
| Bronze | $424 | $382 | $327 | -14% |
| Expanded Bronze | $513 | $426 | $330 | -23% |
| Silver | $573 | $497 | $439 | -12% |
| Gold | $728 | $655 | $509 | -22% |
| Platinum | $532 | $596 | $607 | 2% |
Short-term health insurance in Michigan
You can purchase short-term health insurance in Michigan, but policies are restricted when compared to the federal guidelines for these types of plans. If you had a short-term plan, coverage would only be provided for up to six months and renewals would be prohibited.
Although short-term plans provide a variety of coverage benefits, they do not cover some of the essential benefits including maternity, mental health and prescription drugs. Before purchasing a short-term health plan, you should make sure the policy is appropriate for your needs.
Compare Health Insurance Quotes in Michigan
Best cheap health insurance companies in Michigan
For those looking to compare policies, there are currently nine health insurance companies on the Michigan state exchange:
- Blue Cross Blue Shield of Michigan Mutual Insurance Co.
- Priority Health
- McLaren Health Plan Community
- Blue Care Network of Michigan
- Ambetter from Meridian
- Physicians Health Plan
- Total Health Care USA Inc.
- Molina Healthcare of Michigan Inc.
- Oscar Insurance Co.
The best cheap health insurance plan will likely be offered by Blue Cross Blue Shield, Priority or Ambetter. These companies offered the cheapest Silver health insurance plans in 84% of Michigan's counties.
Cheapest health insurance plan by county
The county where you live in Michigan will determine the health insurance companies and plans available. To help you find your best health plan, we compared rates from every policy in the state to determine the cheapest Silver policy in each county.
Your actual cost of health insurance will vary depending on your age and family size, but we recommend using this as a starting point to determine the most affordable health coverage near you.
County | Cheapest plan | Age 40 | Couple, age 40 | Couple, age 40 plus child |
|---|---|---|---|---|
| Alcona | MyPriority HMO Silver 5500 - Telehealth PCP | $355 | $711 | $923 |
| Alger | Blue Cross® Preferred HMO Silver Saver | $589 | $1,178 | $1,531 |
| Allegan | MyPriority HMO Silver 5500 - Telehealth PCP | $386 | $773 | $1,004 |
| Alpena | MyPriority HMO Silver 5500 - Telehealth PCP | $355 | $711 | $923 |
| Antrim | MyPriority HMO Silver 5500 - Telehealth PCP | $335 | $670 | $871 |
| Arenac | MyPriority HMO Silver 5500 - Telehealth PCP | $353 | $705 | $916 |
| Baraga | Blue Cross® Preferred HMO Silver Saver | $589 | $1,178 | $1,531 |
| Barry | MyPriority HMO Silver 5500 - Telehealth PCP | $386 | $773 | $1,004 |
| Bay | MyPriority HMO Silver 5500 - Telehealth PCP | $353 | $705 | $916 |
| Benzie | MyPriority HMO Silver 5500 - Telehealth PCP | $335 | $670 | $871 |
| Berrien | MyPriority HMO Silver 5500 - Telehealth PCP | $400 | $801 | $1,041 |
| Branch | MyPriority HMO Silver 5500 - Telehealth PCP | $412 | $823 | $1,069 |
Average cost of health insurance by family size in Michigan
Larger families in Michigan will pay higher premiums for health insurance as more people are added to the policy. The cost of adding another family member to your health coverage will depend on their age.
Children under the age of 15 are charged a flat rate, while older children and your spouse are charged a rate that increases each year as they age.
So, for instance, if you and your spouse were covered by a Silver plan and wanted to add coverage for your new child, your monthly premium would increase by approximately $263 — the average cost to add health insurance for a child in Michigan.
On the other hand, if you've just gotten married and want to add your 40-year-old spouse to your policy, your premiums will double — increasing by $439 per month on average — assuming you're the same age.
Family size | Average monthly cost of health plan |
|---|---|
| Individual plus child | $702 |
| Couple, age 40 | $879 |
| Family of three (adult couple and a child) | $1,141 |
| Family of four (adult couple and two children) | $1,404 |
| Family of five (adult couple and three children) | $1,667 |
Adults are assumed to be 40 years old. Sample rates are based on the average cost of a Silver plan in Michigan.
Methodology
Health insurance rates, deductibles and out-of-pocket maximums in this report were compiled from the Centers for Medicaid & Medicare Services government website. Using Public Use Files (PUF), ValuePenguin calculated average values by county, metal tier and family size to better understand the health insurance marketplace in Michigan.
Sterling Price is a research analyst at ValuePenguin specializing in health and life insurance. He graduated from Syracuse University with a bachelors degree in Finance and Accounting and has previous experience as a licensed life insurance representative.
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.