Average Health Insurance cost

What is the Average Health Insurance cost?

Health insurance, like any other insurance policy, has a lot of factors impacting the premiums one has to pay. However, over the past 10 years, specifically after the ‘Affordable Care Act’ came into effect, there has been a substantial decrease in the number of factors considered in calculating the Average Health Insurance cost.

Shoppers must do extensive online research for multiple quotes in order to find reasonable premiums and adequate coverage. However, locating the Average cost of Health Insurance is much less difficult than locating the average life insurance premium. This is due to the fact that, as opposed to life insurance, only a few considerations are considered when determining rates for health insurance.

The insured person's age, personal background, current health status, and the type of plan he or she chooses are now regarded as the most important influencing factors, while some other factors are either given less weight or are entirely eliminated from the list. With that said, let us look at a study that was conducted to better understand the patterns in Health Insurance Costs in recent years.

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Effect of Age on Average Health Insurance Price:

Rates from various companies were gathered for a sample 21-year-old individual. According to the research, the Average Health Insurance Premium tends to increase with an increase in the individual’s age. Following are the statistics:

• People above 30 years, pay about 1.135 times the average cost.

• Those above 40 years, pay about 1.3 times more.

• Those above 50 years of age, pay up to 1.786 times the average rate.

• People above 60 years of age pay about 3 times the average cost.

This gives us an understanding of how the average health insurance price rises with increasing age.

The Metal-tier Scheme Affecting the Average Health Insurance:

The average cost of health insurance is determined by a collection of metal-tier policies, just as the average cost of life insurance is determined by the type of package a person chooses. They are named after five different metals: catastrophic, bronze, silver, gold, and platinum. The cheapest package is the ‘Catastrophic scheme,' while the most expensive is the Platinum scheme. The cost of these plans is determined by the amount of coverage provided. As a result, the cheapest plan will have the least coverage, while the most expensive plan will provide up to 90 percent coverage of medical care costs.

Types of Plans Affecting the Average Health Insurance:

Aside from the programmes described above, health insurance premiums are distinguished by another group of policies that are dependent on the medical care that a person chooses to pursue. In other words, insurance providers have a variety of policies, the degree of which is determined by the type/method of care selected. HMO, PPO, EPO, and POS are the names of these plans. HMO appears to be the most stringent of all policies in terms of which hospitals the insured may attend and the type of care for which coverage would be given. Customers should research these plans and choose the one that best meets their needs.

The coming paragraphs highlight the different premiums prevalent in the United States.

Health Insurance Rates for Individuals:

1. Average premiums for the metal-tier plans are as follows:

• Platinum: $583

• Gold: up to $507

• Silver: $428

• Bronze: $388

• Catastrophic: $174

2. Average premiums as per age:

• People below 18 pay around $187

• Between 18 and 24 years, the premiums rise to $219

• Between 25 and 34 years, people pay around $288

• Between 35 and 44 years, the premiums are $364

• Between 45 and 54 years, the premiums are $482

• For people above 54 years, the premiums increase to $701

3. The average premium for an individual in the US, excluding subsidies is about $393. This is about 22% more than the general average health insurance cost (i.e. $321).

4. Deductibles for individuals are about $4,328.

Health Insurance Rates for Families:

1. The average premium for a family, excluding subsidies, is about $1,021. This is 23% more than the general premium in the US (i.e. $833).

2. Deductibles for a family are up to $8,352.

Popular Plans in the United States:

1. About 44% of shoppers opt for the bronze plan, while 33% choose silver; making these two the most popular schemes in the US.

2. HMO (Health Maintenance Organization) is chosen by 51% of the population.

3. About 25% of people chose HSA eligible plans i.e. Health Savings Account eligible schemes.

These figures are derived from the enrollment survey.