How Much Is Health Insurance Going To Cost You? (2025)

How Much Is Private Health Insurance?

How much is health insurance? The first step to answering this question is to consider the cost of monthly premiums, which are what you pay the insurance company for your health care coverage.

Insurers can only consider your age, location, smoking status, number of people covered and the plan you select when setting your premium. However, your monthly cost can also be impacted by whether you get your health insurance from your employer or the Health Insurance Marketplace at healthcare.gov.

Both are private health insurance. Public health insurance is Medicare, used by people aged 65 and older, and Medicaid, a program controlled by states to provide healthcare for low-income people.

Cost of Health Insurance From Work

Nearly 52% of working-age adults get health insurance coverage through their employer. Your health insurance cost can vary based on the plan you choose and the percentage of the premium your employer covers.

According to the Kaiser Family Foundation, the average annual premium in 2023 was $8,435 for an individual and $23,968 for family coverage. A worker’s contribution to the premium is 17% for single coverage and about 29% for family plans.

That works out to an average monthly premium of $117 for people with employer-sponsored or group health insurance—or an annual premium of $1,401. Covered workers with a family plan paid $548 per month, or $6,575 per year, for their health insurance.

Cost of Health Insurance From the Marketplace

You can purchase health insurance directly from an insurance company or through the Health Insurance Marketplace at healthcare.gov. Some states also have their own health insurance marketplace.

How much is health insurance a month for a single person? On the federal government’s exchange, the monthly benchmark premium is $477 or $5,724 per year. The national monthly benchmark is based on the silver plan health insurance cost. The marketplace has four metal tiers for plans: bronze, silver, gold and platinum.

Each state that has an exchange has a different benchmark premium. This sets the standards for plans and helps determine subsidies if you qualify.

How Are Premiums Determined?

The Affordable Care Act established the health insurance marketplace and set parameters for health insurance companies to determine premiums. Companies can only consider your age, location, tobacco use and the plan you choose to set your premium.

Gender cannot be used in setting a premium. This means there is no average health insurance cost for a single female or average health insurance cost for a single male. The exception is for short-term health insurance, which can be used to fill a gap in health insurance coverage.

These are the factors health insurance companies use to calculate premiums:

Age

In most cases, premiums are based on someone 21 years old and increase as you pass through the decades. They can be as much as three times higher, but no more, for an older person.

Location

Your state and where you live within your state—whether an urban or rural area—can impact your premiums. What you pay for health insurance is affected by state and local regulations, competition and what it costs to live there.

Tobacco Use

Health insurance companies are permitted to charge as much as 50% more in premiums for people who use tobacco or smoke.

Number of People Covered

If you add your spouse and dependent children, an insurer can charge you more.

Chosen Plan

If you choose a plan with more benefits, you may pay more. On the Health Insurance Marketplace, plans are divided into bronze, silver, gold and platinum tiers. Essential coverages are the same, but bronze has lower premiums and higher out-of-pocket costs. Platinum plans carry higher premiums and lower out-of-pocket costs.

In addition to your gender, health insurance companies cannot consider pre-existing conditions or your medical history in calculating your premium.

How Much Is Health Insurance Per Year?

Average annual premiums for employer-sponsored health insurance and insurance from the marketplace are $8,435 ($1,401 for an employee’s share) and $5,724, respectively. That can get you insurance. However, your healthcare costs can include deductibles, copays and coinsurance. The maximum you can pay out-of-pocket in a year is $9,450.

What Are the Average Health Insurance Rates by Age?

If you’re 18 to 21, you may pay the lowest average rates for health insurance. You may also be able to stay on your parents’ plan. Generally, 21 is the base age for health insurance premiums, and the government caps premiums at three times that base for people 64 and older.

What Is the Average Cost of Health Insurance in Your State?

Where you live plays a role in determining your health insurance premium. Each state has an average benchmark premium—for the second-lowest silver tier plan for someone 40 years old—and that information is available from the Kaiser Family Foundation.

Talk to ConsumerShield About Insurance

Do you want to talk to a professional about health insurance? At ConsumerShield, our insurance professionals help you learn more about health insurance, even if we don’t sell you a policy. Get in touch with us today.