To secure affordable health insurance through the Affordable Care Act (ACA) marketplace, it’s essential to compare the least expensive health insurance plans available in your region.
At Healthcare.gov, the ACA marketplace allows you to evaluate health plan choices directly, offering details on expenses, deductibles, and coinsurance. This platform serves as an excellent resource for individuals seeking health insurance options outside of employer-provided coverage.
We conducted a thorough comparison of health plans offering ACA coverage to identify the most optimal and cost-effective health insurance plan available.
Best Affordable Health Insurance Companies
- Kaiser Permanente – Cheapest Health Insurance Company
- Blue Cross Blue Shield – Best Provider Network
- UnitedHealthcare – Best for Customer Satisfaction
How Much Does Health Insurance Cost?
A bronze health insurance plan costs an average of $373 monthly for a 30-year-old. A 40-year-old pays $420 monthly on average for the same coverage, a 50-year-old pays $587 monthly and a 60-year-old pays $890 monthly for bronze coverage.
A bronze plan has the lowest health insurance premiums on the ACA marketplace. Silver plans have the next lowest premiums. A silver health insurance plan costs an average of $488 monthly for a 30-year-old, $549 for a 40-year-old, $767 for a 50-year-old and $1,164 for a 60-year-old.
All of those averages don’t include subsidies or tax credits. ACA plans are the only types that qualify for subsidies based on your household income. People with household incomes below 400% of the federal poverty level qualify for the subsidies that can receive your health insurance costs.
Average Cost of Health Insurance by Age
Age plays an important role in how much you pay for ACA marketplace coverage.
| Age of member | Average monthly overall cost | Blue Cross Blue Shield monthly cost | Kaiser Permanente monthly cost | UnitedHealthcare monthly cost |
|---|---|---|---|---|
|
Age 21
|
$397
|
$444
|
$348
|
$396
|
|
Age 27
|
$419
|
$468
|
$365
|
$415
|
|
Age 30
|
$453
|
$506
|
$396
|
$450
|
|
Age 40
|
$509
|
$569
|
$445
|
$506
|
|
Age 50
|
$712
|
$795
|
$622
|
$708
|
|
Age 60
|
$1,079
|
$1,206
|
$946
|
$1,076
|
How Can I Get Affordable Health Insurance?
The most affordable health insurance is generally through a plan that you buy at work. Most pre-retirement Americans who have health insurance get group health insurance through an employer.
If a workplace health plan isn’t an option, you may find affordable health insurance costs through the Affordable Care Act (ACA) marketplace, especially if you qualify for subsidies.
Another option for cheaper health insurance is catastrophic health insurance. You can purchase catastrophic coverage through the ACA marketplace, but they’re only available to people under 30 or those going through severe financial hardship, such as homelessness.
Catastrophic health plans offer the same comprehensive coverage found in standard ACA plans. Two major differences between catastrophic plans and standard plans are eligibility and catastrophic health insurance doesn’t have coinsurance. Coinsurance is the percentage you pay for healthcare services after reaching your annual deductible and before meeting your out-of-pocket maximum.
Catastrophic plans only have a deductible and out-of-pocket maximum, which is the same amount. That means you pay up to your deductible and then the health insurance company picks up the rest of the out-of-pocket costs for the year if you have catastrophic health insurance.
Average Monthly Health Insurance Costs by Tier
| Tier | Average monthly cost |
|---|---|
|
Catastrophic
|
$260
|
|
Bronze
|
$345
|
|
Silver
|
$452
|
|
Gold
|
$585
|
What to Consider When Searching for Affordable Health Insurance
Consider your family’s current and near future healthcare needs when looking for an affordable health insurance plan. Are you planning to start a new family? Are you on many prescription medications? Do you expect you’ll need to get that trick knee fixed in the coming year?
All of those factors should be taken into account so you can decide whether or not you can choose a plan with a high deductible. A high-deductible health plan (HDHP) typically has lower premiums, but you pay more out-of-pocket when you need healthcare.
Annual Costs, Premiums and Deductibles
The first thing you’ll likely notice when looking for affordable health insurance on the ACA marketplace is the monthly health insurance premium. What you pay varies by the insurance company, deductible, where you live, type of plan, how many people are covered, your age, whether you smoke and your household size and income. Review all costs—premiums, deductibles and coinsurance—of plans you’re considering.
You’ll also want to pay attention to how your health insurance deductible stacks up against your premium. A plan with lower premiums and a high deductible might be a good fit if you don’t expect to need much healthcare. But if you regularly see a doctor, a plan with higher premiums and lower out-of-pocket costs like deductibles may be the most affordable health insurance over the course of the year.
Understand Metal Tiers
In the health insurance marketplace, ACA plans are grouped into four “metal” categories: bronze, silver, gold or platinum health insurance. The metal tiers which indicate how costs are split between you and the health insurance company.
- Bronze plans: You pay the lowest premium every month, but you also have a high deductible, so when you seek care, you have higher costs because it’ll take more to reach your deductible. This metal plan is ideal if you just want coverage for worst-case scenarios. Your health insurance pays 60% of your healthcare costs and you pay the remaining 40%.
- Silver plans: This monthly premium is slightly higher than bronze plans, but your costs are lower when you seek care. Your health insurance pays 70% of your healthcare costs while you contribute 30%.
- Gold plans: If you routinely visit your physician or need care, consider a gold plan, which has a higher monthly premium but lower point-of-care costs. Your health insurance pays 80% and you pay 20%.
- Platinum plans: This plan features the highest monthly premium, so if you’re frequently in need of care, you can rest assured that most of your care will be covered with minimal point-of-care costs when you use any services.
Premium Tax Credits
You’ll want to take advantage of premium tax credits if you’re eligible. Premium tax credits can be used to make health insurance more affordable. The tax credits lower your monthly health insurance payments when you enroll in an ACA plan on the health insurance marketplace.
People with household incomes at 400% of the federal poverty level or below are eligible for premium tax credits. Silver plans may also get cost-sharing subsidies that reduce out-of-pocket costs, depending on household income.
These are two ways to get more affordable health insurance through the ACA marketplace. You’ll find out if you’re eligible after you enter your household information into the marketplace website. The marketplace will tell you whether you’re eligible for those discounts and how much you may save.
HSA vs. FSA
When looking for the most affordable health insurance plan for you, it’s important to know the difference between an FSA and an HSA. Health savings accounts (HSAs) are available only if you have a high-deductible health plan. These are health plans with an annual deductible of at least $1,600 for an individual or $3,200 for family coverage.
An HSA lets you reduce overall healthcare costs by saving pre-tax money in a health-specific savings account. With an accompanying debit card, you can then use these funds to pay for deductibles, copays, coinsurance and qualified medical expenses. An HSA cannot be used to pay monthly premiums associated with your health insurance plan.
You can keep an HSA regardless of your employment status and, after you turn 65, you can treat it like a retirement account for health costs, using the funds however you want without penalty.
Meanwhile, a flexible spending account (FSA) is a similar benefit provided alongside health insurance plans offered through your employer. You fund your FSA with pre-tax dollars from your paycheck and use a paired debit card when you want to use the funds on qualified medical expenses. One drawback to FSAs is the amount you save is unlikely to roll over from one year to the next. In other words, if you don’t use it by a certain date, you lose it.
Out-of-Network Coverage
It’s generally more affordable to see in-network providers than out-of-network providers. If you’re going out of network to see a preferred provider or visit a preferred facility, know that they don’t have a contract with your health insurance plan company and will likely cost more—sometimes even full price.
To keep costs low, either pick a plan that includes your preferred care providers in its network or choose a more forgiving and flexible plan when it comes to out-of-network coverage.
Out-of-Pocket Maximum
This amount is the most you could possibly have to pay for healthcare services in a single year. Your deductible, copays and coinsurance for any in-network services all count toward this maximum. Monthly premiums, payments for services not covered and out-of-network visit costs don’t contribute to your out-of-pocket maximum.
Once you hit your maximum, your health insurance plan kicks in to cover 100% of your costs for the remainder of that year. So if you’re trying to find the most affordable healthcare plan, pay close attention to the out-of-pocket maximum and how much it could possibly support you.
How Do I Choose the Best Affordable Health Insurance Company?
As you prepare to compare health insurance quotes to identify the best, affordable health insurance, keep the following in mind issues beyond costs:
- The type of plan: If you want the most affordable health plan benefit design, you may want to go with a health maintenance organization (HMO) or exclusive provider organization (EPO) plan. Those plans require you to stay in the plan’s provider network, but they have lower premiums than a preferred provider organization (PPO) plan. A PPO gives you more flexibility, but that comes with a higher price tag.
- Your healthcare providers: Make sure that your providers accept a health insurance plan before you buy it. Check with your providers to confirm they take that specific insurance plan and don’t rely on the health insurance company’s online provider directory, which can be incorrect or out of date.
- Your health insurance options: Getting added to another person’s health plan may cost less than buying your own health insurance. Review all of your health insurance options, including a spouse’s or parent’s health plan, before choosing a plan
