Average Cost Of Health Insurance (2016)

Health Insurance premiums have risen dramatically over the past decade. In the past, insurers would price your health insurance based on any number of factors, but after the Affordable Care Act, the number of variables that impact your health insurance costs have been reduced dramatically. We conducted a study to look at how health insurance premiums vary based on these characteristics. In our data we illustrate these differences by using an example 21 year old. Older consumers will see higher rates with 30 year olds paying 1.135 times more, 40 year olds paying 1.3 times more, 50 year olds paying 1.786x and 64 year olds paying 3 times the cost listed.

Average Cost Of Health Insurance

One of the primary factors in your health insurance costs depends on where you live. In this first table we look at health insurance premiums and how they differ based upon the state you reside in.

Monthly and Annual Health Insurance Rates by State (Age 21)

State	Monthly Health Insurance	Annual Health Insurance	% Change vs Avg.
Alaska	$426	$5,112	73%
Alabama	217	2,604	-12%
Arkansas	236	2,832	-4%
Arizona	247	2,964	0%
Delaware	255	3,060	4%
Florida	285	3,420	16%
Georgia	253	3,036	3%
Iowa	251	3,012	2%
Illinois	244	2,928	-1%
Indiana	276	3,312	12%
Kansas	196	2,352	-20%
Louisiana	284	3,408	15%
Maine	271	3,252	10%
Michigan	251	3,012	2%
Missouri	254	3,048	3%
Mississippi	234	2,808	-5%
Montana	210	2,520	-15%
North Carolina	270	3,240	10%
North Dakota	242	2,904	-2%
Nebraska	243	2,916	-1%
New Hampshire	246	2,952	0%
New Jersey	307	3,684	25%
New Mexico	211	2,532	-14%
Nevada	279	3,348	13%
Ohio	258	3,096	5%
Oklahoma	209	2,508	-15%
Oregon	206	2,472	-16%
Pennsylvania	231	2,772	-6%
South Carolina	249	2,988	1%
South Dakota	235	2,820	-4%
Tennessee	225	2,700	-9%
Texas	239	2,868	-3%
Utah	180	2,160	-27%
Virginia	222	2,664	-10%
Wisconsin	280	3,360	14%
West Virginia	242	2,904	-2%
Wyoming	366	4,392	49%

Average Health Insurance Premiums By Metal Tier

Health Insurance plans are separated into different metal tiers based on the proportion of health care costs the insurance plan is expected to cover. Bronze plans cover the smallest proportion, having the highest deductibles, copays and coinsurance. On the other end of the spectrum, Platinum plans offer the greatest amount coverage expected to cover 90% of all costs. The average rates paid for insurance plans are inversely related to the amount of coverage they provide, with platinum plans being the most expensive and bronze / catastrophic plans being the cheapest. The following table shows the average rates a 21 year old would pay for insurance based on plans in the different tiers. Older consumers would see their plans increase according to the age scale set by the federal guidelines.

Monthly and Annual Health Insurance Rates by Metal Tier (Age 21)

Type	Monthly Premium	Annual Premium
Catastrophic	$167	$1,999
Bronze	$201	$2,411
Silver	$247	$2,961
Gold	$291	$3,487
Platinum	$363	$4,360

Average Rates By Plan Type

Another distinction between plans that can change the rates you pay, is the type of network the plan uses. Depending on whether the plan is a PPO, HMO, EPO or POS plan, consumers will have access to the health care providers managed in different ways. HMOs tend to be the most restrictive about which doctors you can see and what you must do to see them. This usually means that the insurers save on your cost of care and thereby provide lower premiums.

Monthly and Annual Health Insurance Rates by Plan Type (Age 21)

Type	Monthly Rate	Annual Rate
HMO	$230	$2,764
POS	$244	$2,928
PPO	$251	$3,019
EPO	$254	$3,056

average cost for insurance for small business, average cost for insurance for teenage drivers, average cost for insurance per month
Source: http://docphy.com/business-industry/personal-finance/insurance/average-cost-health-insurance-2016.html