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 what is health insurance and 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.

Those answer the question “What is private 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 KFF (formerly the Kaiser Family Foundation), the average annual premium in 2024 was $8,951 for an individual and $25,572 for family coverage. A worker’s contribution to the premium is 16% for single coverage and about 25% for family plans.

That works out to an average monthly premium of $114 for people with employer-sponsored or group health insurance—or an annual premium of $1,368. Covered workers with a family plan paid $525 per month, or $6,296 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 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 $497 or $5,964 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 Much Is Health Insurance Without a Job?

Being unemployed doesn’t impact the cost of health insurance. However, your household income, location, family situation and other factors do. You might receive free or reduced Medicaid or pay a $0 premium for insurance from the Marketplace.

Annual Health Premium Trends

On average, health premiums for both individuals and families have risen year over year. According to KFF, average costs were $8,951 for single coverage and $25,572 for family coverage as of 2024.

Average Annual Premiums for Single and Family Coverage, 1999-2024

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 Does Health Insurance Cost by Plan Type?

Your monthly premium depends on the type of health insurance plan you buy. Health maintenance organizations (HMOs) and exclusive provider organizations (EPOs) cost less but require you to stay in-network, providing less choice.

Preferred provider organization (PPO) and point-of-service (POS) plans cost more but provide more choices. For example, if you're 40, you may pay $523.45 per month for an HMO, $559.05 for an EPO, $594.22 for a PPO and $566.19 for a POS.

Are Health Insurance Premiums Tax Deductible?

Health insurance premiums are tax deductible. However, you may want to seek professional tax guidance since the rules are complicated.

How Much Is Health Insurance Per Year?

Average annual premiums for employer-sponsored health insurance and insurance from the marketplace are $8,951 ($1,368 for an employee’s share) and $5,964, respectively. That can get you insurance. However, your healthcare costs can include deductibles, copays and coinsurance. The average deductible for health insurance increases nearly every year, and the maximum you can pay out-of-pocket in a year is $9,200.

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 parents' insurance until 30. 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.

Average Cost of Healthcare by Family Size

How much is health insurance a month for your family? Family size is a factor, and children are cheaper than adults. Consider these costs:

• One Adult, Age 30, and One Child: $811.45
• One Adult, Age 30, and Two Children: $1,135.71
• Couple, Aged 30: $974.39
• Couple, Aged 30, and One Child: $1,298.64
• Couple, Aged 30, and Two Children: $1,622.90
• Couple, Aged 30, and Three or More Children: $1,947.16

Other factors also may affect how much you might pay for health insurance for your family.

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

When you ask, “How much is health insurance a month?” 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 KFF.

Health Insurance Costs With and Without Tax Credits

In 2024, the benchmark premium for a health insurance plan was $477 without the premium tax credit. The benchmark in each state is based on a person who is age 40 with the second-lowest-cost silver plan. With the premium tax credit, the average monthly cost for health insurance was $66.

Alternatives to Health Insurance

Perhaps, you want to consider alternatives. Several exist: primary care memberships (gaining access to services through a subscription), health care sharing ministries (a pool of people with the same religious or ethical belief sharing the cost of health care), medical discount cards and short-term health insurance.

You could go without insurance, which is risky and could lead to medical debt or state penalties.

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.