Health insurance in the U.S. can be costly if you don’t qualify for the government tax credit subsidies, aka the affordable care act (Obamacare). The government marketplace offers some serious discounts; some are several hundred dollars. However, not everyone is eligible, and for those of you who are not, how do you determine the cost of health insurance, and how do you afford it? Herein lies the question. How do individuals and families pay for health insurance in today’s economy?
That depends on the insurance company, the policy coverage, the insured, and their income. For example, looking at Anthem Blue Cross, you’ll find that an individual Gold plan, HMO, will cost roughly $712 per month. For a female head of household with a son, Anthem will charge about $729 a month for the Bronze plan HMO. A family of three, where the primary breadwinner is male, will cost approximately $1200 a month with a Bronze HMO plan.
You can see how much the insurance premiums increase as your family size grows. If you use the same model as above with a family of three, but the mother is a smoker, you’re looking at costs as high as $1300 a month.
You can see how smoking increases the premium by one thousand dollars. Let’s switch to a different health insurance company and see what they would charge. An individual female, a non-smoker, with Oscar, would pay about $450 a month.
Remaining with Oscar, if you add a child, the price goes up about $200, and the new cost will be $648 a month. If you add a spouse to the equation, Oscar’s monthly premium jumps to $1080 for a family of three. Comparing the two insurance companies, Oscar is more affordable for individuals and families. Let’s look at Blue Shield and its costs.
For an individual female, she’ll pay $716. If you add a child to the situation, the monthly price increases to $994. As we did before, let’s add a spouse and recalculate. Blue Shield will charge roughly $1712 for a family of three. We can now conclude that Blue Shield has the highest monthly costs than Anthem and Oscar.
We haven’t looked at how much these same insurance companies would cost per month if you’re eligible for government subsidies. Beginning with Anthem, a family of three will now pay $387 instead of $1300. This is determined by answering a few questions about the insured and your income, as well as your estimated doctor appointments.
Living within the Los Angeles area, an individual female with an income of $25,000 a year will pay as little as $30 a month. You can see why the affordable care act or ObamaCare is so popular. If you live in California, you call this discounted health insurance covered CA. With the health insurance marketplace, two people who make $50,000 will pay only $180 a month with Anthem.
These are just some examples of health insurance costs in California compared to the lower prices with the help of the government tax credits. There has been a constant discussion about the affordable care act and whether it’s constitutional. When Obamacare was first enacted, in 2010, under President Obama, the country saw health insurance affordable for the first time, and they liked it.
If you live in Florida and you qualify for the affordable care act, you can expect to pay about $500 a month through Ambetter Balanced Care for a family of three. If you’re an individual and you qualify, you’ll spend approximately $65 a month. This is a considerable saving, especially for the individual in good health, with minimal doctor visits or prescriptions.
Let’s move to Pennsylvania and find out the cost of health insurance for a family of four through the affordable care act. When savings are applied, the cost would be roughly $828 a month. If you live in Nevada, with the same amount of family members, with government subsidies applied, you’ll only pay $259 a month. With these savings, you can see why so many individuals and families take advantage of the health insurance marketplace.
Let’s break down health insurance per state and see how much monthly premium costs. The states with the least expensive monthly premiums are Hawaii, at $411 per month. Idaho, at $415 per month. Utah at $423 per month. Arkansas at $431 and Mississippi at $432 per month. Now, let’s look at some of the most expensive monthly premiums.
The state of New Jersey charges, on average, $591 per month for health insurance. Vermont’s average is $607 per month. The great state of New York charges, on average, $624 a month for health insurance, and Wyoming’s monthly premiums are $662 per month. Alaska’s average monthly premium is a staggering $780.
Just like car insurance, health insurance cost is determined by the age of the insured. For example, a person under the age of 18 will pay, on average, $236 a month. As the age increases, so does the premium. 18-24 years of age, and the monthly premium is $278. Those between the ages of 25-34 will pay $329 on average. People aged between 35-44 will pay $411 per month.
As you can see, the older the age, the higher the cost. 45-54-year-olds will have to pay, on average, $551 per month, and those 55-64 will spend roughly $784 a month. The older the insured, the greater risk of death and or illness, which is why the cost rises. Something else important to understand before purchasing a health insurance plan is that the higher the annual deductible (or the amount the insured must meet before benefits begin), the lower the monthly premium costs will usually be.
The cost of health insurance is also broken down depending on the type of plan; HMO, PPO, POS, EPO. For example, the monthly premium for an HMO is roughly $427, whereas a PPO will cost $517 per month. An EPO will cost approximately $469 per month, and a POS will be, on average, $462 per month. No matter the type of health insurance, it is a necessity for everyone. Unless you qualify for the affordable care act, you will end up paying extremely high monthly payments for health insurance.
With that said, the best you can do for yourself and your family is determining the number of doctor visits and prescription drugs you will need before purchasing a plan, and if you do qualify for government subsidies, the best of luck to you!