How much Is Health Insurance

How much is health insurance? Across USA different monthly or annually installments are being paid by Americans. Annual installments for family of four costs $20,576, and employers picked up 71% of that in 2019, highest standard plan for 27 years old in 2020 is Wyoming’s $723 and lowest in new Mexico’s at $282.

cost of health insurance

Health care open enrollment dates

Health care open enrollment dates is the annual time period to sign up for a health insurance program if you are eligible for special enrollment period then you always have a chance to enroll in a market place.

How does health insurance work?

Before we talk about the different advantages of health insurance we must know how does health insurance work.There are various types of health policies, which are usually being offered once in a year, so when a customer gets it (either individual or being employee) the insurance company is responsible for the payment of your well being as long as instalments are being paid.

First you have to enroll yourself within the date issued by the government or employer-sponsor plan or having a private insurance, secondly you have to pay instalments regularly.

Does Health Insurance make life happier?

When think about insurance a question always pop up in our mind that does health insurance make life happier? so after looking closer we came to know that insurance gives us peace of mind because our physical mental and social well being completely depends on our health, health insurance policy can abort the chances of disastrous healthcare expenses, secondly it can lessen the unpleasant costs of medical care, thirdly invested health insurance coverage can generate income effects.

Yes health insurance can make life happier because it lessen our excessive costs of medical care and save us from disastrous expenses.

cost of health insurance

What are Premiums?

The amount of money which is paid by an individual or a business to an insurance company is called Premium. Health insurance premiums are generally being paid on monthly basis, you have to pay full costs of premiums if you need to insure yourself, with the help of this you can easily know that how much it will cost if you are purchasing a health insurance plan for yourself. Although there are different ways and prices accessible, based on the level of coverage you need.
When you buy your own insurance the procedure is more complex then just selecting a company plan and the instalments payments are coming easily through your monthly salary payment checks.

Premiums are the instalments that you and/or your employer has to pay for health insurance program every month, quarter or year.

basic key points

  • If you just turned 26, or you are un-employed, self-employed, working as part-time, started a new business or just have retired then you may need to purchase the health insurance coverage.

  • Health insurance market which was created in 2014 by the Affordable Care Act (ACA) is the best source of purchasing the individual health insurance service if you do not have the option enrolling in employer-sponsored health insurance program.

  • Retired citizens have a chance to enroll in Medicare, Medigap, or Medicare advantage if they are qualified.

Purchasing a health insurance service and how it works

Group health insurance plan is source of many Americans to be enroll in health insurance by their employers .Medicaid and Medicare are also main names in health insurance providers. Medicare is basically for those people who are 65 or older, or young people who are facing disabilities, and those people who have end stage renal disease. Medicaid is designed for those Americans which have low income despite their ages.
State or federal government does not allow you to purchase health insurance directly to them. If you are not qualifies for Medicare and Medicaid and your company does not offer you the employer-sponsored health an insurance program then you have to buy health insurance plan from private insurance companies or from health insurance market place.

cost of health insurance

Situations when you need private health insurance

There are several conditions where you need to buy individual health insurance plans from private companies.

26 years of age or older

According to Affordable Care Act (ACA) children under 26 years of age can be dependent on their parents, after the age of 26 they need to purchase their own health insurance plan.

Being unemployed

If you lost your job you are still qualified to maintain your health insurance plan through a program which is Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA permits qualified employees and their dependents to carry on further with their insurance plan even when they loose their job.
COBRA allows employees to continue their health insurance plan up to 36 months(under specific conditions) charges for enrolling in COBRA are very high this is because the employed person has to pay all charges of the insurance by himself, normally only a portion of the payment is paid by employers on behalf of their employees.

A part time worker

If you are a part time worker then you should go for your own insurance plan paid by yourself because part time workers mostly do not have option to have a employer-sponsored plan because part time employee work lower number of hours then full time worker or at least 40 hours per week.


A self-employed per works for himself no matter if he owns a business or working as a freelancer. A self employed person is qualified to have a health insurance, can be insured through their spouse if married, if not married then have to purchase by their own.

Owning a business and has employees

When you start a business and have employees then you may required to offer them health insurance, if it is not required you may think to offer such options to attract qualified job candidates to be a competitive employer. In that case you need to buy a business health insurance plan also called a group plan.

When you, your spouse, or your parent retires

You are no longer qualified for employer-sponsor health insurance plan when you get retired. If you are not 65 of age yet and not disabled you need to buy a private health insurance plan until you turn 65 then you can go for Medicare. Retirees also choose private Medigap or Medicare advantage plans too.

When your existing insurer drops you

ACA stops insurers from canceling your coverage due to already existing circumstances or because you have made error in your requisition, there are also other conditions when your coverage may be canceled, it is also can happen that your insurance is so expensive that you cannot pay it.

Above we have talked about the circumstances in which we have discussed that when we need to buy private health insurance by our own if we need to have health insurance coverage, and have discussed it point wise to understand it well.

How much is health insurance a month

The question how much is health insurance a month is the most ask able question when you think of buying a health insurance. Many people are afraid of buying their own health insurance plan comparatively
enrolling in employer-sponsor program, some news shows that i can be more economical at times then employer-sponsor plan.
Like a study shows the Kaiser family foundation came to know that the standard monthly instalment for an employer-sponsor insurance plan for individual in 2019 was $603 and $1,725 for family coverage.
Contrarily as stated by Kaiser family foundation it you are thinking to buy your own private insurance outside of employer-sponsor plan the standard cost of individual health insurance was $440 and $1,168 was the standard monthly instalment for family.
If you met a conclusion of buying health insurance through market place, you may eligible for cost-sharing depletion allowance and advance instalment tax credits, this will be helpful for lowering the amount you pay for instalments and lowering your deductible and co-insurance, co-payments you are accountable for.

In this we have talked about the cost of health insurance for family and individual and also have stated the cost of private versus government and employer-sponsor versus personal health insurance costs.


Some of the most asked questions are answered below:

How much do you pay for health insurance?

The standard cost of private health insurance for a hospital plan for a individual grown up living in NSW is between $96 to $115.15 a month, where as others only cost between $14.30 and 29.61every month February(2020).

What health insurance is the cheapest?

MEDICAID is the cheapest health insurance option, although you first have to be qualified to enroll in the federal insurance program, your household earnings must be less then 133% or 138% of the federal poverty level (FPL).

Is it cheaper to buy your own health insurance?

Employer-sponsor health insurance plan is cheaper then private health insurance plan. Health insurance at workplace help you to remunerate your health costs. Federal law insists that large employers has to pay at least half of the health plan instalment.

How much should I pay for health insurance a month?

The standard health insurance cost for 2020 is $456 for a individual and $1,152 for family every month. Although costs differ between the vast choice of health plans.

How do I get health insurance without a job?

Market place is the right place to get an affordable health insurance plan if you are un employed through the savings which are based on your household income size, you can be also eligible for free or low cost plans through MEDICAID or Children health insurance program (CHIP).


Having a health insurance is truly peace of mind for the family or individual no matter you are using it employer based health insurance program or having your private health insurance plan, main thing is you have enrolled for it because there are many ways of having it which can meet your requirements, besides thinking that how much is health insurance you must go and check market place if you don’t have the option of employer-sponsor program, because health insurance is your partner for unexpected days.


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