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Average Cost of Health Insurance (2020)

Insurance medical cover rates have risen dramatically over the past decade. In the past, insurers would value your health insurance based on any number of factors, but after the Affordable Care Act, the number of variables that affect your health insurance costs have been reduced dramatically.

Average Health Insurance Plans Premiums by Metal Tier

Health insurance plans are separated into different metal tiers depending on the proportion of health care costs the insurance plan is intended to cover.

Catastrophic and Bronze health insurance plans cover the smallest proportion, having the highest deductibles, copays, and coinsurance. On the other end of the spectrum, Platinum plans provide the most significant amount of coverage, expected to cover 90% of all costs.

The average health insurance rates are inversely related to the amount of coverage they offer, with Platinum plans being costly and Bronze / Catastrophic plans being the cheapest. The following table shows the average health insurance prices for individual health insurance for a 40-year-old based on plans in the different tiers. Older customers would see their plans increase according to the age scale set by the federal guidelines.

Monthly and Annual Health Insurance Prices by Metal Tier

Policy premiums for a 40-year-old person.

Average Health Insurance Prices by Plan Type

Another distinction between health insurance plans that can change the rates you pay is the network the plan uses.

Depending on whether the plan is a PPO, HMO, EPO, or POS plan, shoppers will have access to the healthcare providers managed in different ways.

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

Monthly and Annual Health Insurance Rates by Plan Type

Policy premiums for a 40-year-old individual.

Factors That Affect Health Insurance Quotes

USA health insurance prices are determined by a limited set of factors, which have been set by law. States can limit the degree to which these factors affect your rates — for example, some states like California and New York don’t allow the cost of health insurance to vary based on tobacco use.

• Age: The healthcare cost per individual covered by a policy will be set according to their age, with rates increasing as the person gets older. Kids up to the age of 14 will cost a flat rate to add to a health plan, but premiums usually increase annually beginning at age 15.
• Where you reside: Health insurance carriersdetermine the set of policies provided and the cost of coverage based on the state and county you reside in. So, a resident of Miami-Dade County in Florida, for example, may pay cheaper rates for the same policy than a resident of Jackson County.
• Smoking or tobacco use: If you smoke, you can pay up to 50% higher prices for health insurance, though the maximum increase is determined by state.
• The number of persons insured: The total cost of a health plan is set according to the number of individuals covered by it, and each individual’s age and tobacco use. For instance, a family of three, with two adults and a child, would pay a much higher monthly health insurance premium than an individual.

Call for your Quote Today

Stop waiting around! The right insurance provider is out there and we’re going to make sure you’re covered for the foreseeable future. Accidents can happen any time whether it’s day, night, workdays, or holidays. Insurance is the best way to prepare for the unpredictable, and a great way to secure your peace of mind. Give us a call today or fill out the form for a quote – you’ll be glad you did!

Resources and References:

• How to Buy Catastrophic Health Insurance Plans
• Factors that Affect Health Insurance Costs