How Much Does Health Insurance cost?

This is a common question from people shopping for health insurance for the first time, or after a qualifying event such as a change in job. It’s a good question to ask, too, as your finances are as important as your health. Ideally, you will have a health plan that can balance the coverage of your health needs and the mitigation of the impact on your wallet. Knowing what you can expect when it comes to your costs for health insurance is vital in making an informed decision and picking the right plan for you.

Unfortunately, there are many variables when it comes to what you can expect to pay for your health care. Your total costs include more than just your premium. We hope to clarify what those are so that you can compare plans and find as much of that balance for yourself as possible. When it comes to your total costs, some of the things you need to consider include your:

• Monthly Premium. Your premium is the up-front amount that your health insurance plan costs, and you pay it monthly. The cost of your premium can vary heavily, usually influence by the quality of your plan. For example, a bronze health plan will have lower premium costs that a gold health plan. Total premium costs can range anywhere from just a couple hundred dollars a month, to close to or even over $1000 a month. There is no right or wrong premium, as what you get should depend on your health needs compared to what the plan offers. If you have a Marketplace health plan, you may be able to lower your costs with a premium tax credit.
• Deductibles. Your deductible is the amount you’ll be required to spend for health care before your plan pays for anything. Deductibles also vary per-plan. Your health needs will also determine whether you need a high deductible or low deductible plan. It can be challenging to know how much care you will need, or how much it will cost. A high deductible plan is considered a higher financial risk, but you will pay less each month for coverage.
• Co-pay & co-insurance. Co-pay is a fixed amount you will pay for specific services and care. Co-insurance is a percentage amount you will pay for certain services and care. For example, a doctor’s visit could have a $35 co-pay. This means that you will pay $35 for every visit to the doctor, and the rest is covered by insurance. Similarly, your plan may have dental insurance with a 20% co-insurance. This would mean that you would pay 20% of your trip to the dentist. Your co-pays and co-insurances will vary as well, depending on the plan.
• Out-of-pocket maximum. This is the highest amount you can spend in a year. Once you reach your out-of-pocket maximum, your insurance will cover 100% of covered services. You can compare out-of-pocket maximum between plans, and get a lower one if you spend a lot on health care.

Compare costs between plans

Your health needs will be the biggest determining factor in what plan you sign up for. If you rarely frequent a doctor, a low premium, high deductible plan may be the right choice for you. Alternatively, you may have a prescription medication or a service that is a regular part of your yearly health care. Paying a higher premium for coverage of those needs may save you money annually. The best way to determine how much you will pay is by referring to a plans documents or benefits summary.

You can also compare plan costs with a licensed expert by filling out our form HERE. We can walk through your specific health needs and find a plan that offers the most coverage. We’ll handle the confusing and stressful part and help you get the coverage you need. We can provide you specific information so you know just how much your health insurance will cost. Reach out to us today to get started saving money and getting fuller coverage.