What Is the Average Cost of Health Insurance in the US?

On average, people in the United States spend around $100 to $600 per month out of pocket on health insurance premiums. However, how much health insurance costs for you will ultimately depend on the type of plan you choose, whether you qualify for financial assistance and other personal rating factors regulated by the federal government’s Affordable Care Act.

Continue reading for a more thorough breakdown of when health insurance is expensive — including sample rates based on various policyholder characteristics and plan details — along with tips for how you can lower your health insurance premiums.

On This Page

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  How Much Is Health Insurance?

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  How Much Does Health Insurance Cost per Month?

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  Can You Get Health Insurance for Free?

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  What Factors Impact the Cost of Health Insurance?

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  How Can I Lower the Cost of My Health Insurance?

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  How To Get Health Insurance Coverage at a Low Cost

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  FAQs

How Much Is Health Insurance?

The average nationwide premium for a benchmark health plan from the Health Insurance Marketplace or an equivalent state-operated health exchange is $625 per month in 2026. That said, the average premium tax credit subsidy is around $415 per month, meaning the average out-of-pocket benchmark premium payment for Marketplace users who qualify for subsidized coverage is about $210 per month.^[1][2]

Keep in mind that Marketplace premiums skyrocketed due to the expiration of the enhanced premium tax credits at the end of 2025 — disqualifying many middle-income Americans from receiving tax credits and lowering the subsidy amount for other eligible Marketplace users — and, consequently, the projected exit of many young, healthy individuals from the health insurance market.^[3]

Due to the higher base premiums and lower subsidies, the average person who qualified for tax credits in 2025 is expected to pay more than double for Marketplace coverage in 2026.^[3]

Meanwhile, the average monthly cost of employer-sponsored group health insurance is about $777 for individual coverage and $2,249 for family coverage as of 2025. Since employers typically cover around 75% to 85% of the cost of their employees’ health plans, the average employee’s share of their health insurance premium is roughly $124 per month for single coverage and $585 per month for family coverage.^[4]

How Much Does Health Insurance Cost per Month?

To get an idea of how various health insurance cost factors can impact your monthly premium costs, see the following sections. Each section goes over median rates for noncatastrophic individual health plans before taking premium tax credits into account for residents of the 77020 ZIP code in Harris County, Texas — the largest county that uses the federal Marketplace at HealthCare.gov — based on several different metrics.

Age

Below, you’ll find overall median health insurance rates by age for Marketplace customers who fall within the sample parameters mentioned above.^[5]

Carrier

Next, the upcoming table goes over median monthly health insurance costs by age for each of the seven major health insurance companies operating on the Health Insurance Marketplace in Texas.^[5]

Plan Type

The next table shows how the median amount a plan member can expect to pay per month may vary based on whether they choose an exclusive provider organization, health maintenance organization or point-of-service plan.^[5]

Tier

Finally, health insurance premiums depend on your plan’s tier — also known as its category or metal level — which indicates what portion of your health care costs your insurance company will cover and how much your share of the costs will be. The following table includes examples of median monthly rates based on plan tier.^[5]

Can You Get Health Insurance for Free?

You may be able to get free health insurance coverage if you qualify for Medicaid. Children in every state qualify for Medicaid if their household’s income is at or below 133% of the federal poverty level, while adults in states that have expanded Medicaid qualify at the same income thresholds.^[6] For 2026, the FPL in most states is set at $15,960 per year for individuals — plus $5,680 for each additional family member.^[7]

The FPL thresholds are higher in Alaska and Hawaii, so residents of these states may qualify for Medicaid at higher income levels.^[7]

Previously, Marketplace users with annual incomes below 150% of the FPL could receive their state’s benchmark plan for free due to enhanced premium tax credits. However, following the expiration of the enhanced subsidies, all eligible shoppers must contribute at least 2.1% of their yearly household income toward the premium for a benchmark plan — which refers to the second-cheapest plan in the silver tier available in any given state.^[8]

Nevertheless, you could potentially use your tax credit to obtain a lower-tiered health plan for free. For example, if you are an individual making $16,000 per year, your mandatory minimum contribution toward the benchmark premium is $336 — so, if your state’s benchmark plan costs $600 per month, you are eligible for a $264 premium tax credit. As a result, you could use your tax credit to cover the full cost of a $250-per-month bronze plan, if such a plan is available.

What Factors Impact the Cost of Health Insurance?

ACA-compliant health insurance companies are only allowed to take the following five factors into account when determining the premiums for a specific major medical insurance plan:^[9]

• Age: Health insurers may charge older plan members as much as three times more than younger policyholders for the same coverage.
• Location: Various location-based factors may impact the average health insurance cost in your area, including state and local regulations, differences in competition and the cost of living.
• Tobacco use: While the Affordable Care Act prohibits the use of many kinds of personal details in the health insurance underwriting process, it does give insurance carriers the freedom to charge tobacco users up to 50% more for coverage.
• Whether the plan provides single or family coverage: Naturally, you’ll have to pay more for a plan that covers your spouse and other dependents than you would for a plan that only covers yourself.
• Tier: Plans in the bronze and silver tiers generally have lower premiums than gold and platinum plans. However, the trade-off is that bronze and silver plans also require you to pay more in out-of-pocket costs — such as deductibles, copays and coinsurance — whenever you receive health care services.

Although your income won’t affect your base premium, it can affect the overall amount you end up paying because it determines your eligibility for Marketplace subsidies. In addition, your plan may be more expensive if it offers more benefits than it is required to offer by law. Conversely, your health insurance company cannot consider your sex or any preexisting conditions you have when setting your rates.^[9]

How Can I Lower the Cost of My Health Insurance?

Some simple ways you could lower the cost of your health insurance plan include the following:^[10]

1. Update your income on the Marketplace website so you’ll know whether you qualify for premium tax credits.
2. Join an HMO plan, which keeps costs low by restricting your ability to visit specialists without a referral or any provider outside of the plan’s network.
3. Switch to a lower-tiered plan — especially if you rarely need health care or have enough money saved up to cover a high deductible.
4. Select a cheaper plan that is compatible with a health savings account, which you can use to set aside money for qualified medical expenses on a tax-free basis.

Should I Consider Joining Someone Else’s Health Insurance?

In general, you can only be on someone else’s health insurance plan if you are their dependent. It may be beneficial to join your spouse’s plan or stay on your parents’ health insurance until you turn 26, depending on how cost sharing works for the plan. For example, if every member of a family plan shares a deductible, they may collectively reach the deductible and unlock coverage more quickly than they would individually.

Additionally, it may be cheaper to purchase a family plan than to buy individual plans for each family member, depending on your family’s size. Health insurers can only take into account up to three children under the age of 21 when setting the premiums for a family plan.^[11] As a result, families with four or more children may not have to pay more for coverage whenever they add new children to their health insurance.

How To Get Health Insurance Coverage at a Low Cost

The best strategy for finding affordable health insurance is to compare quotes from three to five carriers. Each insurance company will need personal information — including your age and whether you use tobacco — along with policy information, such as the number of people you want your plan to cover. However, contacting insurers one by one can make for an excessively time-consuming process.

That’s why you should comparison shop through an online marketplace platform, like SmartFinancial. All you have to do is fill out a brief questionnaire, and then we’ll connect you with an insurance agent who can help you find a health plan that fits your needs and budget. To compare health insurance quotes for free in as little as a few minutes, click here now!