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How Much Is Individual Health Insurance?

Alvin Nelson
February 5, 2021
Alvin Nelson

how much is individual health insurance

Individual health insurance has long been considered more expensive and more complicated than a group plan.

But that’s not the case anymore.

Though most people spend thousands on health insurance every year, not many full-time workers shop around for it first. They often accept whatever group plan their employer offers. However, with the age of the internet, many are catching on to all the other, better choices out there.

HealthPlans.com knows that smart consumers want to find the best deal that gives them the tailored coverage they need. So, they’ve created an easy three-step process for those looking for individual health insurance.

Individual Health Insurance vs. Group Health Insurance

Group Health Insurance

Group health insurance, also called company-based health insurance, is a coverage plan selected by one’s employer. Most mistakenly assume that this option is the cheapest and has the most benefits. Not true!

Individual Health Insurance

Like group health insurance, individual health insurance plans can be for one person or an entire family. Many who purchase an individual health plan are self-employed, unemployed, or work part-time. There are dozens of individual health insurance companies throughout the U.S., but not all of them operate in every state. Public health insurance through the Affordable Care Act is also considered individual health insurance.

The Health Insurance Marketplace

Health insurance is not one-size-fits-all. With all other products and services, a free market exists to keep prices competitive and benefit consumers. The health insurance marketplace does the same thing.

Within the health insurance marketplace, individuals can choose between public or private health insurance options.

The Affordable Care Act and Special Enrollment Periods

The Affordable Care Act (ACA) allows people to buy health plans through the government exchange. There are several plans available, depending on lifestyle and need. Open enrollment for ACA plans usually occurs at the end of each year.

After December 15, individuals can’t get the next year’s coverage unless they qualify for the Special Enrollment Period (SEP). Those who may be eligible for the Special Enrollment Period include those who have:

  • Lost their health coverage
  • Moved
  • Had a baby
  • Adopted a child

While many choose to utilize the Special Enrollment Period, others opt for private health insurance coverage.

Enroll in Private Plans Anytime

Unlike the ACA plans, private plans don’t usually have specific enrollment periods. Every year, more full-time, part-time, and self-employed people are turning to the health insurance marketplace for coverage. However, it’s easy to become overwhelmed with all the available options.

That’s where HealthPlans.com comes in.

Navigating the Health Insurance Marketplace

HealthPlans.com helps individuals and families review all their choices, learn the Real Total Cost (from the monthly premium to the out-of-pocket expenses), and select the best fit for their health status and budget.

Why Get Individual Health Insurance?

People turn to individual health insurance for many reasons: to fit their lifestyle, in response to life events, or for its cost.

Lifestyle

For some people, individual health insurance is necessary. For others, it’s a choice. Instead of settling for an employer’s group plan, many like the flexibility individual plans offer. They don’t need as much coverage as others, and individual health insurance plans can be as comprehensive or as minimalistic as necessary.

Life Events

Certain people searching the health insurance marketplace have undergone significant life changes. Maybe they added to their family, or the primary breadwinner lost their job (and benefits). Individual health plans can help bridge the gap between jobs (and some choose to stick with it for the long haul).

Cost

Many have found that individual health insurance beats their employer’s group plan in cost. The ACA plans have lower tiers that fit tight budgets. Likewise, private health insurance companies offer competitive pricing.

Websites like HealthPlan.com make it even simpler for consumers to explore their health insurance options.

How Much Is Individual Health Insurance?

Health insurance can be a significant expense, especially for those using their company’s group plan. Employer plans increase five percent in cost every year. For context, the average worker paid more than $5,700 towards their company-based health insurance coverage in 2018.

So, when considering deductibles, premiums, copays, out-of-pocket expenses, and more, how much does individual health insurance cost?

It depends entirely on the health insurance, the consumer’s specific needs, and a few other factors like:

  • Location
  • Income
  • Dependents

The ACA bronze plan starts at just $1 a day (meaning around $365 a year). It’s the perfect option for a young, healthy person who doesn’t often go to the doctor.

For those who want a lower deductible, the ACA’s platinum plan (starting at $6.67 per day, or around $2,435 a year) leaves the individual responsible for only 10 percent of their health care costs.

Private individual health insurance plans vary, too. Healthplans.com helps intelligent consumers search for the right health plan, public or private, with a quick three-step process. Individuals and families can then click through their options and get the Real Total Cost for each plan.

The days of confusing (and inaccurate) pricing guides from bulky group plans are over—health insurance doesn’t have to be complicated anymore.

HealthPlans.com
700 S. Flower St., Suite 640,
Los Angeles, CA 90017

HealthPlans.com is an independent marketplace and is not a federal or state Marketplace website. HealthPlans.com does not provide quotes or sell insurance directly to consumers, is not affiliated with any exchange, and is not a licensed insurance agent or broker. Accordingly, you should not send us (via mail or email) any sensitive information, including personal health information or applications. Any such communications will not be treated as confidential and will be discarded, as, in offering this website, we are required to comply with the standards established under 45 CFR 155.260 to protect the privacy and security of personally identifiable information.

This website may not display all data on Qualified Health Plans being offered in your state through the Marketplace website. To see all available data on Qualified Health Plan options in your state, visit your state Marketplace website or go to the Health Insurance Marketplace website at www.HealthCare.gov

Advertised Pricing:

There are several factors that impact your monthly premium; including, but not limited to your age, geographical location, annual income, dependents, and the type of plan you choose. Monthly premiums do not include out-of-pocket costs.

The advertised price may not be typical. It was generated using the Kaiser Family Foundation's subsidy calculator that was accessed on September 16, 2020. The following parameters were used: 21 year old adult, non-tobacco user, annual income of $24,700 in 2020, no children, and no available coverage through a spouse's employer. The resulting monthly premium was $30 per month (or $360 per year after $2,751 in subsidies) for a Bronze Plan. Even when using the same parameters, this result is subject to change.