How Much Health Insurance Will Cost You

Written By Mary Beth Eastman
Last updated November 22, 2019

Note: We receive a commission for purchases made through the links on this site. Our sponsors, however, do not influence our editorial content in any way.

How Much Health Insurance Will Cost You
February 26, 2019

Simple. Thrifty. Living.

In the wake of the Obamacare era, people are wondering how the recent changes will impact how much health care will cost. Indeed, while there seems to be an effort to create a world in which healthcare is free or affordable for everyone, we have a way to go before we get there. With healthcare literally being vital to our health, it only makes sense why some would be anxious about the topic. That said, let’s look at how much health insurance will cost you.

Although American healthcare costs tend to be a tad on the high side, healthcare premiums tend to be drastically lower. According to the Milliman Medical Index, which tracks these things, healthcare costs exceeded $28,000 for a family of 4 in 2018. That includes the average cost of insurance paid by companies and workers, as well as deductibles.

Fortunately, most of us are not responsible for paying nearly that much. For instance, although the total healthcare costs of individuals are said to be around $18,764 annually, out of pocket costs, such as premiums and co-pays, are only about $5,714 per year.

Still, that’s nothing to sneeze at. If you’d rather be making money on your health than spending it, check out this app called Healthywage. Healthywage will pay you real money for completing weight loss challenges. Sure beats paying another co-pay.

The Affordable Care Act introduced a tiered system of healthcare coverage. Although there seems to be some effort to revamp the system, the healthcare system maintains the tiered option. Depending on which package fits your needs, the prices break down as follows:

  • Catastrophic coverage– Bare minimum coverage; monthly cost around $167; annual premium approximately $1,999
  • Bronze coverage– This provides you with a bit extra coverage; monthly cost around $201; premium around $2,411
  • Silver coverage– This plan provides relatively better coverage than previous tiers; the average monthly cost is around $247; the annual premium is approximately $2,961
  • Gold coverage– average monthly cost of $291; annual premium of $3,487
  • Platinum coverage– This is the best coverage available; the average monthly cost is around $363; the annual premium is around $4,360.

Overall, healthcare coverage can be costly but it is also very necessary. No matter if there is a mandate or not, purchasing the proper health insurance coverage is the only way to prevent yourself from incurring huge healthcare costs. Once you have those huge medical bills, digging out from under a heap of medical debt requires strict discipline and sometimes outside help, such as loans and even debt consolidation.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

  • No comments yet. Be the first to get the conversation started. Here's some food for thought:

    Do you have any thoughts?

Submit a Comment

Your email address will not be published. Required fields are marked *