Choosing the right type of health insurance is all about going through multiple options and comparing their characteristics side by side. The cost of health insurance is one of the primary, most important factors for many people. If you’re looking to get insurance, you may be wondering what is the average cost of health insurance. Keep on reading to discover the latest data.
Factors that Affect the Cost
Several factors will impact the price of health insurance. Age, gender, location, body mass index, tobacco use, family history and pre-existing medical conditions are some of the most common characteristics that insurers take a look at. Lifestyle and personal factors like profession, previous history of not being insured and marital status can also play a role.
2016 Insurance Cost Figures
The annual health insurance rates for the different states varied greatly in 2016. Annual health insurances are most affordable in Utah where the average is 2,160 dollars per year. Insurances in the state became 27 percent more affordable on an annual basis. In comparison, the most expensive insurances are available in Alaska where the annual average is 5,112 dollars. The sum is 73 percent higher on an annual basis in comparison to numbers for 2015. The type of insurance plan also plays a role in determining the cost.
EPO health insurance plans are the most expensive ones with a 254-dollar monthly expense and an annual cost of 3,056 dollars. The most affordable plan type is HMO with a 230-dollar monthly expense and a 2,764-dollar annual cost.
Health Insurance and Its Cost for the Average Adult in the US
Anyone interested in getting affordable health insurance should look at their health and lifestyle profile prior to demanding quotes. A number of improvements can be made to enhance one’s chances of obtaining a cheap plan.
According to the National Conference of State Legislatures, the average family in the US spent 18,142 dollars on health insurance in 2016. For families that are fully-employed, a portion of this cost is handled by the employer.
The average increase in premiums for most people in the US is four dollars per month on an annual basis. This represents a four percent increase in the cost of health insurance from 2015 to 2016.
Inexpensive isn’t Always Good
The insurance market has many options to offer, some of them being much more affordable than others. While reducing premiums is a possibility, however, it’s not always the best option. Individuals who are looking for a price cut may come across insurances that will cost approximately 40 to 50 dollars per month. Some of these plans could lack coverage for preventative procedures. The co-pay and co-insurance costs can also be incredibly high.
This means that choosing the lowest premiums isn’t always the best idea, especially in the case a medical service is needed. The insurance can prove to be much more expensive in the long run than a plan that comes with reasonable premiums within the price ranges listed in the previous sections of the article.
Many factors that determine the cost of health insurance are beyond the control of individuals. Still, it’s very important to shop around and identify the best price to quality ratio. Insurance companies create highly specific quotes for their potential customers. Looking for multiple quotes and exploring all of their characteristics prior to choosing is one of the keys to picking adequate and cost-efficient coverage.