Average Monthly Premium Costs in Obamacare
Statistics indicate that the average American spent $3,704 on health insurance in 2021. According to the Kaiser Family Foundation, the monthly premiums for individuals in health insurance plans available through the Affordable Care Act (ACA) during the open enrollment period for 2022 were $594 compared to $590 in 2021 and $595 in 2020.
Average Monthly Premiums in Obamacare by State
While $594 was the national average monthly premium for Obamacare plans, it’s important to understand that the majority of enrollees receive financial assistance in the form of Advance Premium Tax Credits (APTCs).
Costs of Employer-Sponsored Health Insurance Plans
Although employer-sponsored health insurance plans can be a better deal for enrollees who do not qualify for financial assistance under Obamacare, they are usually not free. Employers may contribute to the cost of the plan as part of employee benefits, but these are decisions that companies make based on their circumstances.
Health Insurance Subsidies in Obamacare
To qualify for financial assistance under the Affordable Care Act (ACA) in the form of premium tax credits, you must not have affordable health coverage available through your employer. You must also earn between 100% and 400% of the federal poverty line. In the contiguous United States (excluding Alaska and Hawaii), this support ranges from $12,880 to $51,520 for an individual and from $31,040 to $124,160 for a family of four.
What Determines Your Health Insurance Price?
Now that you understand the average costs of health insurance and how to qualify for financial assistance, you may have a question: what will make my health insurance price go up or down? The following factors can affect the cost of your health insurance:
- Whether you qualify for financial assistance or not
- Your age
- Your location
- The number of people covered by the plan (individual versus family coverage)
- Whether you use tobacco
- Your out-of-pocket costs required by the health insurance plan and whether there is a maximum limit
- Whether you have coverage available from your partner’s or spouse’s employer
- The type of plan you have
Which Health Insurance Plan in Obamacare Costs Less?
There are four categories of plans under Obamacare: bronze, silver, gold, and platinum. For the three most common categories (bronze, silver, and gold), the average monthly premium in the global market decreased in each between 2018 and 2020.
- The lowest average monthly premium for bronze coverage was $331 in 2020, $328 in 2021, and $329 in 2022.
- The lowest average monthly premium for silver coverage was $442 in 2020, $436 in 2021, and $428 in 2022.
- The lowest average monthly premium for gold coverage was $501 in 2020, $482 in 2021, and $462 in 2022.
Tips for Reducing Health Insurance Costs
Shopping around and researching to find the best health insurance is important, as your situation and medical expenses play a significant role in what you get from your health insurance plan. A Health Savings Account (HSA) may help you save money on medical expenses if you have a high-deductible plan to go along with it. Compare the out-of-pocket costs of different plans. Out-of-pocket costs may include deductibles, co-pays, and coinsurance. Create a list of what is important to you or your family and compare how each plan fits with what you are looking for. Make sure your plan allows you access to the providers you want. If you choose a plan with a limited provider network, you may find it harder to not accumulate extra costs for using out-of-network providers. If both you and your spouse have access to health insurance, consider using a benefits coordination strategy to enhance your coverage and potentially reduce costs. If you anticipate expenses, such as those related to mental health needs or pregnancy in the near future, review your health insurance options with your family’s needs and your plans in mind. Some health insurance plans may have better coverage for pregnancy and childbirth than others.
Conclusion
Even
If you do not have access to an employee plan, the cost of health insurance through the Obamacare marketplace may be affordable or, in some cases, free. If you are not eligible for financial assistance, the price of health insurance can become increasingly difficult. Be sure to review all options available to you across different market categories.
Frequently Asked Questions (FAQs)
What is the health insurance marketplace?
Source: https://www.thebalancemoney.com/how-much-is-health-insurance-4775127
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