Are you looking to purchase health insurance?
You’ve made a smart decision, not just for your health, but also for your personal finances. In a country where an average hospital stay costs well over $10,000, you literally cannot afford to get sick, especially if you don’t have any health coverage.
However, if you’re among the 27.5 million Americans who don’t have health insurance, there’s one major thing holding your back: money. The average cost of health insurance can be prohibitive.
In this article, we’re diving into the cost of health insurance and the various factors that will influence your premiums.
Come with us.
What’s the Average Cost of Health Insurance?
The average monthly cost of health insurance in the United States falls anywhere from $450 to $600. So, expect to spend about $6,000 a year on your health insurance.
That being said, it’s not enough to just know the average cost of health insurance. This is because there isn’t a standard figure for everyone. What you pay won’t be the same as what your closest friend or sibling pays.
There are a number of factors that will influence your personal cost. Here they are:
Employer-Sponsored or Self-Sponsored Coverage
There are two ways you can get health insurance coverage.
If you’re employed, your employer will typically put you on the company’s health insurance plan. They will pay the bigger chunk of the premiums, but you’ll also chip in. The amount of money you will chip in varies from employer to employer, but it’s far less than what you would pay if you were on a self-sponsored plan.
If you’re not on employer-sponsored coverage, your only option is to purchase health insurance individually. As you’d expect, this option is more expensive because you have to pay 100 percent of your premiums.
Private vs Government Insurance
The federal government runs national health insurance programs, such as Medicare. You can also buy health insurance from private insurance companies.
Insurance plans offered by the government are usually cheaper than plans offered by private companies. Companies, unlike the government, are in it to make a profit. This makes their premiums pricier.
That being said, most people purchase private health insurance plans because government plans have tough enrollment requirements. If you qualify for a government plan, though, you’ll make a good saving.
Your Age and Health Condition
The older you are, the more you’ll pay for health insurance. Older people are more susceptible to illnesses and need more frequent healthcare.
Also, if you’ve got a pre-existing health condition, you’ll likely pay higher premiums.
These are the major factors that will influence the cost of health insurance. If you still cannot afford a traditional plan, you’ve got some options. This post fleshes out some of the alternatives you can pursue.
That’s the Average Cost of Health Insurance
Although we have provided the average cost of health insurance, what you end up paying might be lower or higher than the estimate. You already know the various factors that will determine your cost.
Keep tabs on our blog for more helpful posts.