How much is health insurance per month?
ACA plans: In 2026, health insurance costs an average of $625 per month for a 40-year-old on the second-lowest-priced silver plan in the Affordable Care Act (ACA) Health Insurance Marketplace. That’s according to an analysis from KFF, an independent health research organization.1 The price varies by location—from a low-end average cost per state of $401 per month in New Hampshire to a high of $1,299 per month in Vermont—and plan category.2
ACA plans are categorized into coverage tiers: bronze, silver, gold, and platinum. The main difference between tiers is how much each type pays for covered services. You’d pay more for services but less for premiums (the monthly cost for coverage) with a bronze plan and less for services but more for premiums with a platinum plan.
KFF found the average lowest price for individual coverage for each plan type offered nationwide for a 40-year-old. (Platinum isn’t available in all states and counties.)
| Category | Average lowest monthly premium |
|---|---|
| Bronze | $456 (up 20% from 2025) |
| Silver | $611 (up 26% from 2025) |
| Gold | $615 (up 21% from 2025) |
Source: Average marketplace premiums by metal tier, KFF, 2026.
Outside of the ACA Health Insurance Marketplace, this is how much health insurance typically costs:
Employer-sponsored plans: In 2025, the average employee contribution amount toward premiums for employer-sponsored health plans was $120 per month for an individual and about $571 per month for a family plan that also covered a spouse and children, according to KFF.3 The premiums are actually much more expensive, but employers tend to heavily subsidize those costs for their covered workers.
Medicare: This federal program provides health care coverage for those 65 and over, and certain younger people with medical conditions or disabilities. But there are multiple parts and options within Medicare, each with different charges. Here’s what premiums run in 2026 (which will change for 2027), unless otherwise noted.
| Type | What it helps cover | Monthly premium cost |
|---|---|---|
| Medicare Part A | Inpatient hospital care, short-term skilled nursing facilities, hospice care, and some home health care services | $0, generally if you paid at least 10 years of Medicare taxes while you worked; otherwise, it’s $311 or $565 each month, depending on how long you or a spouse paid Medicare taxes4 |
| Medicare Part B | Medical insurance (e.g., preventive services, ambulance services, durable medical equipment) | Depends on your income, but at least $202.905 |
| Medicare Part D | Prescription drugs | Depends on your plan and your income |
| Medicare Supplement Insurance (aka Medigap) | Helps pay your share of out-of-pocket costs in Original Medicare (Parts A and B) | Varies by plan type, location, demographic data, and provider |
| Medicare Advantage (MA) (aka Medicare Part C) and Medicare Advantage with Prescription Drug Coverage (MAPD) | These plans are sometimes referred to as an "all-in-one" option. They combine Original Medicare services (Parts A and B) with benefits such as vision, dental, hearing, or prescription drug coverage. | $146 (2026 estimated average amount, varies by plan) |
What you pay for Medicare and/or additional coverage may vary based on what coverage and services you get, and what providers you visit. Costs may include premiums, deductibles, copays, coinsurance, etc.
Related: Medicare basics
What goes into the cost of health insurance?
Understanding the different expenses involved with paying for health insurance and care may help you find the right coverage for you.
Premiums: The amount you pay for your medical plan every year. You owe the premium whether you need care or not. If you buy insurance from a government marketplace or insurance company, you pay the insurer. If your health insurance comes from an employer, your premiums are usually deducted from your paychecks. If you're eligible for Medicare, Part B premiums are typically deducted from your Social Security benefits.
Deductibles: Health insurance plans often have a deductible, the yearly amount you must pay toward your covered health care costs before your medical plan starts to pay. It resets at the start of each plan year.
For example, if your plan has a $1,000 deductible, you’ll need to pay 100% of the first $1,000 of medical expenses. After that, you may pay a smaller percentage of your medical bills.
Copayments: Copay (or copayment) is a fixed amount you pay for a covered health care service after you’ve met your deductible. For example, a plan could charge a $50 copayment every time you visit your primary care physician after you meet your deductible.
Coinsurance: Coinsurance is the percentage of costs you pay for covered health care services after you’ve met your deductible. If you have 20% coinsurance, you’d pay 20% of the bill, while your insurer would pay the remaining 80% once you’ve met your deductible.
Out-of-pocket maximum: Health insurance plans set an annual limit on how much you have to pay out of pocket. If your plan has an $8,000 out-of-pocket maximum, that’s the most you're required to pay for covered health care costs during the plan year, subject to certain exclusions such as premiums and copays. Once you hit this amount, your plan will usually pay 100% of covered costs for the rest of the year.
In general, the more you pay in premiums, the lower your out-of-pocket costs. It's a balancing act to determine which approach is most cost-effective when choosing a health insurance plan.
What affects the cost of health insurance per month?
Insurers consider several factors when determining the health insurance cost per month.
Location. Insurers set rates depending on regional medical care costs, regulations, competition, and cost of living. If you move, your health insurance cost could change significantly.
Age. As people get older, they’re more likely to need medical care. For this reason, most states allow insurance companies to raise premiums based on age. ACA can be up to 3 times higher for older policyholders than younger ones, though some states ban that practice.
Service coverage. A higher-tier plan that covers more services for a lower out-of-pocket cost likely charges higher premiums than a lower-tier plan with leaner coverage. Access to doctors and hospitals also matters. Plans that restrict you to a small network typically cost less than plans that offer more flexibility.
Who’s covered. A plan that covers a person’s spouse and children is typically more expensive than one that covers an individual only.
Tobacco use. In most states, insurers can charge applicants who smoke a rate of up to 50% more.
Typically, insurers can’t consider your weight, pre-existing conditions, or past medical history when setting premiums. Insurers are also prohibited from charging different rates based on gender. However, short-term health insurance plans don’t have to comply with the ACA, so some insurers could base rates on your health. Note: Generally, outside the Medigap Open Enrollment Period, Medicare Supplement (Medigap) insurers may be able to charge applicants higher premiums based on their health conditions unless they qualify under a specific situation or guaranteed issue right. Some states may have special rules about Medicare Supplement plans that may provide individuals more flexibility.
Ways to potentially lower the cost of health insurance
You might be able to reduce your health insurance costs in a few ways:
Compare your options annually. Insurers can change coverage and premiums each year. It's possible that the plan you use now may not be the most cost-effective next year. Even if you’re satisfied, check what’s available to you at renewal time to find out if you could save money with a different plan. Weigh not just premium prices but also deductibles, copays/coinsurance, and out-of-pocket maximums, in addition to provider networks.
Consider a high-deductible health plan. High-deductible health plans (HDHPs), also known as HSA-eligible health plans, have a deductible of at least $1,700 for individual coverage and $3,400 for family coverage in 2026. Typically, the higher your deductible, the lower your insurance premiums. This strategy could make sense for individuals who are generally healthy, as it may align with their lesser anticipated health care needs. Be sure to set aside enough in emergency savings to cover the deductible in the event of a major health issue.
Use tax-advantaged plans. If you have an HSA-eligible health plan, you could open and contribute to a health savings account (HSA). This account offers a triple tax-advantaged way7 to help you save, invest, and pay for qualified medical expenses now or in retirement. (Money you put into the account isn’t taxed, and there’s no tax on earnings or withdrawals when used for qualified medical expenses.) You could even pair an HSA with a limited purpose flexible spending account (LPFSA) to pay for qualified vision and dental expenses, if your employer offers it. If you can’t access an HSA, check if your employer offers a health care flexible spending account (FSA). You can’t invest FSA dollars, but the benefit allows you to set aside money on a pre-tax basis to cover qualified medical expenses.
Explore cost-sharing reductions. Cost-sharing reductions are a type of financial assistance for out-of-pocket expenses. For example, cost-sharing reductions could lower your deductible, reduce copays for doctor visits and specialist care, and decrease your share of prescription drug costs. To qualify, you must be covered under a silver ACA plan, and your annual income must be between 100% and 250% of the poverty level, which is $15,960 to $39,900 for a single person in the contiguous US in 2026.
Get recommended checkups and screenings. Staying healthy can help you avoid extra medical bills, so stay on top of routine care. You may be able to take advantage of free or low-cost wellness programs and screenings, like skin cancer screenings and seasonal vaccination programs, if your employer or insurance offers them.