Health insurance can help reduce your medical bills. In exchange, you pay a monthly premium for coverage. Understanding how much health insurance costs allows you to budget for it—and perhaps identify ways to trim what you pay.
How much is health insurance per month?
ACA plans: In 2025, health insurance costs an average of $497 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 $325 per month in New Hampshire to a high of $1,277 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 | $381 |
| Silver | $486 |
| Gold | $507 |
Source: Average marketplace premiums by metal tier, KFF, 2025.
Outside of the ACA Health Insurance Marketplace, this is how much health insurance typically costs:
Workplace plans: In 2024, the average employee contribution amount toward premiums for employer-sponsored health plans was $114 per month for an individual and $525 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 2025 (which will change for 2026), unless otherwise noted.
| Type | What it covers | Monthly premium cost |
|---|---|---|
| Medicare Part A | Inpatient hospital/short-term skilled nursing facility care and home health/hospice care | $0, generally if you paid at least 10 years of Medicare taxes while you worked; otherwise, it’s $285 or $518, depending on how long you or a spouse paid Medicare taxes4 |
| Medicare Part B | Medical insurance (e.g., preventive services, ambulance services, medical equipment) | Depends on your income, but at least $1855 |
| Medicare Part D | Prescription drugs | Depends on your plan and your income |
| Medicare Supplement Insurance (aka Medigap) | What you would otherwise pay out-of-pocket for services covered by 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. | $176 (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.
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 see 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 will be more expensive than an individual plan.
Tobacco use. In most states, insurers can charge applicants who smoke a rate of up to 50% more.
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.
Ways to 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. The plan you use now might no longer be the most cost-effective next year. Even if you’re satisfied, check what’s available to you at renewal time to see 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) have a deductible of at least $1,650 for individuals and $3,300 for families in 2025. Typically, the higher your deductible, the lower your insurance premiums. If you are healthy, this strategy could make sense, since you might not need as much care as someone with a chronic condition. 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 HDHP, you could open a health savings account (HSA). This account offers a triple tax-advantaged way7 to help you save and invest for qualified medical expenses. (Money you put into the account isn’t taxed, and there’s no tax on earnings or withdrawals when used for HSA-eligible expenses.) You could even pair an HSA with a limited purpose flexible spending account (LPFSA) 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 account allows you to set aside money on a pre-tax basis to cover qualified medical expenses.
Look into cost-sharing reductions. Cost-sharing reductions are a type of financial assistance for out-of-pocket expenses (like deductibles, copays, and prescription 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 $15,650 to $39,125 for a single person in the contiguous US in 2025.
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.