What Is the Price of Health Insurance?

 The average person in the United States pays $ 452 a month for business health insurance.1 But the cost of health insurance varies depending on many factors.

You may have been 26 years old and moved away from your parents' plans (#shoot?). Or maybe you are facing a job loss and need to replace your employer's insurance policy. Or you may be looking for alternatives to your employer's plans. Regardless of your situation, you are asking yourself: How much does health insurance cost? Everyone knows health insurance is expensive. This can quickly take your life away from your monthly budget. But how expensive is it? And why is it so valuable? Is there a way to pay less? Well, you got to the right place! I will explain everything you need to know about health insurance, the meaning of all these terms, and the components of the high cost.

Health insurance coverage is key

If you only study the ins and outs of health insurance, I feel your pain. Health coverage is complex, as complex rocket science is complex. You may not know where to start. (And if you are wondering if you even want health insurance, start here.)

Personal insurance is medical coverage by your employer, team, or even the military. You can also get it yourself through the government-Healthcare.gov marketplace. (Small historical study: market place, or stock exchange, was created in 2014 after the Affordable Care Act, or "Obamacare." It allows access to approximately 175 insurance companies. By 2021, registration will be extended to August 15.)

Public insurance is provided by the government. It includes Medicare (for people age 65 and older), Medicaid (for low-income families), or Veterans Affairs Department care.

Your money is the amount you pay each month (sometimes annually) for your insurance.

The amount deducted is the amount you have to pay before your insurance company can get involved. Your maximum salary is the maximum amount of what you will have to pay in one year. For example, if your maximum plan payment is $ 8,000, once you have paid that amount, your insurance company will cover nothing more than that amount for the rest of the year. It works like a safety net so you don't completely damage the bank and health bills.

What is everyone's health insurance?

Individual health insurance is just another term for private insurance that goes against the same plan (as provided by the employer). It's just the type you get on your own, even if you include family members in your plans.

You may be looking for individual health insurance for a variety of reasons. If your employer does not provide it, if it is too expensive or if you retire before age 65. You will also need it if you are working part-time, unemployed or self-employed.

The tips offered in the market are also an example of individual health insurance. Now... let's dig into the numbers.

What is the average health insurance cost? Can you ever wonder how much health insurance each one costs? This is what you can expect. The average American pays $ 452 per month for health insurance coverage and 2021.2 Average households pay $ 1,779 per month.3

But the cost of health insurance varies depending on the cluster. Some things are in your hands, some are not. About your age, the number of people covered by your plan, the level of insurance you want, where you live and all your employees share in the cost of your insurance. Here is a breakdown of the average salary based on your state:

average health insurance

Kaiser Family Foundation, 2021.

Is employee insurance cheaper?

Many people think that user insurance is the best or cheapest option. By 2020, about 157 million people have joined the health care system in the workplace.4

Or is it? Should you choose your employer's health insurance or should you choose individual health insurance? An employer's plan can be cheap sometimes when a company charges part of the price. Your employer may also get a better rate sometimes because they bought a larger insurance package. But not always. It can sometimes be cheap to buy health insurance yourself. While it may take a little work to your end, if you want to save money on your health insurance costs, you can transfer employee insurance and buy individual plans. Is health insurance getting more expensive?

Of course it is. But it is true that over the past decade, health care costs have risen dramatically. According to the Kaiser Family Foundation, the average family pays 55% more by 2020 than in 2010.5 But the figure has increased by 22% since 2015.6 but wages have increased by 4% only compared to 2020 and 2019.7

Health care costs also vary depending on where you live. In some states their numbers are rising, and in others they have fallen. If you feel overwhelmed by health insurance, there is a way to save money on health insurance. Do not give up hope. You always have a choice, although it helps you with less money. There are also ways to save on health care costs that your insurance does not cover.

But if you are trying to reduce the cost while you are paying, or you are just starting to adjust your budget and budget, you can opt for a higher, lower plan that will be effective if you have a big problem. health problems or accidents. This allows you to focus on your needs (at Ramsey we call them four walls) before starting an expensive health care plan.

What affects my health insurance premiums?

Your gender and marital status

Under the Affordable Care Act, insurance companies are no longer able to charge customers according to their nature.8 But other factors change. For example, if you are married and have children, you may have to earn more money to care for your family. Note that if your family income falls below certain levels, tax credits can save you money.9 (Check Healthcare.gov to see if you and your family are eligible.)

But marriage is not the only decision you can make. These are just a few of the things that insurance companies are looking for.

Information about you

Age: When it comes to health insurance, age also changes. As you grow older, you will have to pay for health insurance, sometimes up to three times as much.10

Smoking: If you smoke, insurers can charge you up to 50% for health insurance, unless you live in the following seven states: California, Connecticut, Massachusetts, New Jersey, New York, Rhode Island, Vermont .11 These states have passed laws banning the use of smokers. For everyone else, quit smoking and you can cut the bill in half!

Location: Rewards vary by __cpLocation. For example, in 2020, the monthly salary in the Northeast reached $ 655, but only $ 626 in the Midwest.12 A family living in the Northeast earned an average of $ 1,929, compared to $ 1,716 in the South.13

Different types of food

Buying a health insurance plan can feel like sitting in a grocery store and staring at a product line for about an hour - just not as enjoyable and more expensive! But using a comparison plan can save you money. Of course, the type of plan you choose also affects your health insurance.

Here are some tips on networking you can buy in the health insurance market:

Health Care Organization (HMO): HMO plans limit you to doctors in certain networks. These are usually solid plans, but may have a small budget.

Interest Positioning Organization (PPO): The PPO design is similar to HMO but gives you a little flexibility. You will have to pay a small fee for health care if you use a network provider provider. You are allowed to access non-grid providers, but they are more expensive.

EPO Provider Organization: The EPO scheme limits you to network providers, except in emergencies.

Place of Work (POS): The POS plan offers benefits such as a reduction in medical bills if you use doctors, clinics, and health care providers within the plan network. Remember that you will need a referral from your GP to see a specialist.

High Health Care Plan (HDHP): The HDHP plan is exactly what they look like. You pay a higher price than normal, but you get a lower price. You can also use pre-tax health insurance accounts (HSAs) with these.

Short term plan: Short term plan is a temporary health insurance policy that fills a gap when you are in the middle of work. They are usually three months to a year old.

COBRA PLAN: To avoid confusion with poisonous snakes, the COBRA plan resembles a short and long term plan. They help you prevent interruptions on your insurance if you quit your job.

Disaster planning: Disaster planning affects young people under the age of 30. They have low cost and high rates.

Different insurance levels

OK, stay with me here. I almost finished a marathon review of all health insurance. I looked at different types of blueprints, but there was a little more before I put the blame on all of this.

When it comes to market health care planning, there are four different levels: metallurgy, silver, gold and platinum. Think of them as medals at the Olympics. (Except when it comes to health care, you don't always have to go gold!) These tiers give you different options on how much your plan will actually cost and how much you will spend. pay.