Cheapest Health Insurance: A Complete Guide (2023)
The average American pays $456 a month for individual health insurance and $1,152 for a family plan. While health insurance is a major expense, you can keep your costs down by comparing policies and choosing the right plan for your needs.
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them.
Licensed in Massachusetts, New Hampshire,...
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco.
To ensure our content is accura...
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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UPDATED: Feb 24, 2023Fact Checked
The Lowdown
The cost of health insurance varies by several factors, but the average American pays $456 per month for individual coverage and $1,152 for a family plan
Kaiser Permanente and Aetna tend to have the lowest health insurance rates, though low rates don’t always mean the best service
You can save on your health insurance by picking the right coverage for your needs, looking for government assistance, and comparing plans
Very few things in life are as stressful as needing to visit the emergency room or urgent care without health insurance. Even something simple like visiting your doctor when you have a cold can be prohibitively expensive if you don’t have the right coverage.
Health insurance is the largest monthly expense for many Americans, with the average individual paying $456 a month. Although health insurance can be expensive, there are plenty of ways to keep your costs low.
To get started, make sure you know what health insurance covers. Then, compare rates with as many companies as possible to ensure you receive the best health care at the lowest price.
Read on to learn more about finding the cheapest health insurance that still meets your needs.
Table of Contents
How much does health insurance cost?
There is no getting around the harsh reality, health insurance is expensive. Finding affordable insurance can be challenging, and it’s often a big factor people consider when choosing a job.
Health insurance companies can look at several factors when crafting your rates. These factors include:
Location: Like most types of insurance, where you live plays an integral role in your health insurance quotes. Local health care costs, state laws, and the cost of living in your area affect your insurance.
Age: Older applicants can pay up to three times as much for their health insurance compared to younger people.
Individual vs. family enrollment: You’ll pay more for insurance when you have multiple people on your plan. Some plans increase for each child you add, while others insure all your dependents for the same price.
Keeping these factors in mind, the average American pays about $456 a month for individual coverage and $1,152 for a family plan. However, you may see vastly different prices depending on your unique factors and your insurance company. Cheap individual health insurance is difficult to find.
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Lowest Cost Health Insurance by State
While the average individual pays about $456 a month for health insurance, the state you live in significantly affects your rates. For example, West Virginia and Wyoming residents typically pay more than $500 a month for their insurance. On the other end, Alabamans and Minnesotans often pay less than $300.
Finding the best health insurance by state requires a bit of research to ensure you get the right plan. Understanding the details of any potential policy you might buy is integral to getting your health care needs met.
Which companies have the cheapest health insurance?
You saw above that you’ll pay different rates depending on where you live. While location is crucial to your rates, some companies are generally cheaper options than others.
Kaiser Permanente and Aetna have some of the lowest average rates in the country, but these companies might not be the most affordable in your state. For example, Blue Cross Blue Shield of Arizona is one of the cheapest options in the Grand Canyon State.
While the state you live in affects your rates, looking at the cheapest overall companies can help you start your search for cheap health insurance.
Finding affordable health insurance rates is important, but it shouldn’t be the only thing you consider. Like most things in life, you tend to get better quality health insurance plans when you spend more instead of only looking for cheap health insurance plans. For example, many Kaiser Permanente customers complain about the company’s limited network of physicians.
How do you choose the right health insurance?
More than half of all Americans get their insurance through their workplace or a partner, parent, or guardian’s plan. From affordable monthly rates to voluntary health insurance, there are a lot of benefits to getting health insurance through your employer.
While that works for millions of Americans, many others need to find their own health insurance. However, finding the cheapest private health insurance can be difficult, especially because there are so many options. Follow the steps below to find the best plan for you.
Choose Where to Shop for Health Insurance
Unlike other types of insurance, figuring out where to buy cheap medical insurance can be confusing. There are several options to choose from, but it takes a little research to figure out where you should go.
One of the easiest places to start is Medicare. What is Medicare? Medicare is a federally run program that helps Americans 65 or older and those with a qualifying disability get health insurance. Most Americans are enrolled automatically in Parts A and B when they turn 65. If you want Medigap or Medicare Parts C and D, you can sign up during one of the open enrollment periods.
People with low enough incomes might qualify for Medicaid, which provides millions of Americans with affordable medical insurance when they couldn’t otherwise afford it. Unlike Medicare, Medicaid rules vary by state. You’ll need to check local laws to see if you qualify.
For nearly everyone else, there’s Healthcare.gov. Created by the Affordable Care Act — also called Obamacare — the Healthcare website is a marketplace where everyone can shop for coverage. It makes it simple to apply for financial assistance and choose a plan.
Determine Your Health Needs
The type of plan best for you depends on several factors. For example, people in good health that have the option to get coverage through their job usually have a simple choice to make. Most companies only offer a few options, so deciding which will work best is relatively easy.
People shopping in the Affordable Care Act marketplace might see dozens of choices. Seeing so many options can be overwhelming, especially for first-time buyers.
However, there are a few simple questions you can ask yourself to help you determine which insurance plan to buy. First, you should decide if you need health insurance in case of emergencies or if you need continuing care. Generally speaking, younger, healthier people without a partner or dependents are usually fine with the lowest amount of coverage offered.
However, you’ll need to be a little pickier if you have ongoing health issues or a particular physician you want to continue seeing. Keep your health care needs in mind when you choose a plan. For example, you can eliminate policies that don’t include your preferred physicians in their networks.
Understand Your Financial Responsibilities
Like many other types of insurance, there are certain costs associated with health insurance. You’ll need to understand what you’re financially responsible for to find the right plan. Before you sign up for a policy, you should understand the following terms:
Premium: Your premium is what you pay each month to keep your policy active. Your monthly payments do not apply to your other health insurance financial obligations, like your copayments.
Allowable amount: An allowable amount is the maximum amount your policy will pay for a specific service. If you receive a service that exceeds your allowable amount, you’ll have to pay the difference.
Deductible: Most insurance plans have a yearly deductible you need to pay before your insurance kicks in. For example, a policy with a $2,000 deductible means you need to pay $2,000 for health care services before your insurance starts paying.
Copayment: Once your deductible is met, you usually only need to pay a copayment or coinsurance. A copayment is the amount you need to pay for most basic services, like general doctor visits.
Coinsurance: For services that don’t require a copay, you’ll probably pay coinsurance after your deductible is met. A common coinsurance amount is 20% of your medical bills.
Out-of-pocket maximum: This is the maximum amount you can pay in a year before your insurance covers 100% of your medical expenses.
As you can see, there are several things to keep in mind when you’re shopping for health insurance. While you should be familiar with these terms, you don’t have to remember everything. An insurance representative can help you understand what you need to know before you purchase a policy.
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How to Get Cheap Health Insurance
With the price of health care increasing every year, finding affordable coverage is more crucial than ever. The methods for finding the best policy listed above are important, but there are several other steps you can take to find affordable coverage. To save on your health insurance, try the following tips:
Compare plans. No matter which type of insurance you want to buy, comparing quotes is vital to finding the right policy. You’ll likely overpay for your insurance if you don’t compare quotes.
Consider an insurance broker. If comparing policies proves too confusing, you can get help from an insurance broker. An insurance broker can help you find the cheapest policy that meets all your needs.
Try to join someone else’s policy. Many Americans get their insurance through their employer, which helps save money. Usually, spouses, children, and other dependents are eligible to join a person’s workplace policy.
Use a tax-advantaged savings plan. Health savings accounts (HSAs), health reimbursement arrangements (HRAs), or flexible spending accounts (FSAs) can help pay for your health care costs. Most are available through employers, so check with your company to see if you qualify.
Look for government assistance. Depending on your income, you might qualify for government assistance on your health insurance. Even if you make too much money for Medicaid, there are other government programs that can help.
Review your policy. Open enrollment comes once a year and offers the perfect opportunity to review your policy. If there’s been a change to your circumstances, you should review your current policy to ensure it’s still your best option.
Whether you need a basic family policy or the best supplemental health insurance plans for individuals, using the tips listed above can help you save. No matter what your needs are, comparing multiple policies from different companies is the best way to find affordable coverage.
Find the Best Affordable Health Insurance Today
Having a good, low-cost health insurance policy is integral to your well-being. From annual checkups with your general practitioner to emergency room visits, having a solid health insurance policy can help keep your health care costs down.
Now that you know what to look for in a policy, your next step should be comparing quotes from as many companies as possible. If you don’t compare policies, you might overpay for your health insurance.
Frequently Asked Questions
Who has the cheapest health insurance?
Kaiser Permanente and Aetna have the most inexpensive health insurance in America. However, the most affordable company for you depends on a variety of factors, including your location, age, and how much coverage you need.
What are the two most common health insurance plans?
The two most commonly purchased health insurance plans are health maintenance organizations (HMOs) and preferred provider organizations (PPOs). PPOs typically cost more but allow you to see a wider variety of doctors.
How much does health insurance cost per month in New York?
While you might see something much different from the average rate in your state, New Yorkers can expect to pay about $776 a month for health insurance.
Compare Insurance Providers Rates to Save Up to 75%
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them.
Licensed in Massachusetts, New Hampshire,...
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco.
To ensure our content is accura...
Secured with SHA-256 Encryption
