How Much Does Health Insurance Cost?

How Much Does Health Insurance Cost?

Health insurance is a need, not a want. Even if the penalty fee for not getting health insurance no longer applies starting 2019 (tax return period 2020), you would rather not save money in that area and lose more when a medical issue actually hits.

The Economy and Health Insurance

We spend two times as much on health care than any other developed nation, hitting around 18% of the GDP in 2016. Our business and households cover 50% of the $3.3 trillion that entails.

What provides even more difficulty is the changing winds on healthcare as a priority based on federal preference, which challenges insurance providers to provide quality plans while ensuring they still have a profit margin.

For the first time in a decade, health care is the biggest issue for voters in an election, according to an NBC exit poll. As a citizen, your emphasis on health care will play push-and-pull with the other spending priorities of the government.

With immigration second in line as a major concern for voters (it’s the other way around for Republican government officials), the spending priorities are likely to swing back and forth between the two.

So how much does health insurance cost? It largely depends on which state you live in, and which options you have.

How Do You Know You’re Getting the Right Price?

You know if you’re getting a good deal if the monthly premium is around $244.75 (the average of all private health providers) or the annual premium is around $2,941.75. This can give you something of a standard to work with while looking through your options.

Monthly Health Insurance

Let’s assume that you are looking into health insurance plans because it is not provided by your employer for any reason, or because you want to buy a family member coverage because your current plan does not cover him or her.

One of your options is short-term health insurance. This works especially if you are just looking for a plan to tide you over until open enrolment, waiting for another plan to take effect, or providing temporary coverage to someone.

Monthly Health insurance is usually lower cost, gets approved faster, and helps you try out a service provider. However, it usually doesn’t cover any preexisting conditions, and the Affordable Care Act cannot supplement it.

Annual Health Insurance

One of the most obvious benefits of annual health insurance is that the sum total of the annual premium is usually lower than the sum total of the monthly premium (assuming you used a monthly premium for twelve months). In other words, you pay less in the long run for annual insurance.

However, it might not always be the best way to go, depending on why you are purchasing your own health insurance. If you are freelance or looking into covering additional family members long-term, an annual health insurance plan would look right for you.

Scroll down to find the monthly and annual average health insurance costs of your state!

Alaska

Annual: $5,112 / year ($426 / month)

Compared to national average: 73% higher

Alabama

Annual: $2,604 / year ($217 / month)

Compared to national average: 12% lower

Arkansas

Annual: $2,832 / year ($236 / month)

Compared to national average: 4% lower

Arizona

Annual: $2,964 / year ($247 / month)

Compared to national average: 0%

Delaware

Annual: $3,060 / year ($255 / month)

Compared to national average: 4% higher

Florida

Annual: $3,420 / year ($285 / month)

Compared to national average: 16%

Georgia

Annual: $3,036 / year ($253 / month)

Compared to national average: 3% higher

Iowa

Annual: $3,012 / year ($251 / month)

Compared to national average: 2% higher

Illinois

Annual: $2,928 / year ($244 / month)

Compared to national average: 1% lower

Indiana

Annual: $3,312 / year ($276 / month)

Compared to national average: 12% higher

 

Kansas

Annual: $2,352 / year ($196 / month)

Compared to national average: 20% lower

Louisiana

Annual: $3,408 / year ($284 / month)

Compared to national average: 15% higher

Maine

Annual: $3,252 / year ($271 / month)

Compared to national average: 10% higher

Michigan

Annual: $3,012 / year ($251 / month)

Compared to national average: 2% higher

Missouri

Annual: $3,048 / year ($254 / month)

Compared to national average: 3% higher

Mississippi

Annual: $2,808 / year ($234 / month)

Compared to national average: 5% lower

Montana

Annual: $2,520 / year ($210 / month)

Compared to national average: 15% lower

North Carolina

Annual: $3,240 / year ($270 / month)

Compared to national average: 10% higher

North Dakota

Annual: $2,904 / year ($242 / month)

Compared to national average: 2% lower

Nebraska

Annual: $2,916 / year ($243 / month)

Compared to national average: 1% lower

New Hampshire

Annual: $2,952 / year ($307 / month)

Compared to national average: 0%

New Jersey

Annual: $3,684 / year ($307 / month)

Compared to national average: 25% higher

New Mexico

Annual: $2,532 / year ($211 / month)

Compared to national average: 14% lower

Nevada

Annual: $3,348 / year ($279 / month)

Compared to national average: 13% higher

Ohio

Annual: $3,096 / year ($258 / month)

Compared to national average: 5% higher

Oklahoma

Annual: $2,508 / year ($209 / month)

Compared to national average: 15% lower

Oregon

Annual: $2,472 / year ($206 / month)

Compared to national average: 16% lower

Pennsylvania

Annual: $2,772 / year ($231 / month)

Compared to national average: 6% lower

South Carolina

Annual: $2,988 / year ($249 / month)

Compared to national average: 1% higher

South Dakota

Annual: $2,820 / year ($235 / month)

Compared to national average: 4% low

Tennessee

Annual: $2,700 /  year ($225 / month)

Compared to national average: 9% lower

Texas

Annual: $2,868 / year ($239 / month)

Compared to national average: 3% lower

Utah

Annual: $2,160 / year ($180 / month)

Compared to national average: 27% lower

Virginia

Annual: $2,664 / year ($222 / month)

Compared to national average: 10% lower

Wisconsin

Annual: $3,360 / year ($280 / month)

Compared to national average: 14% higher

West Virginia

Annual: $2,904 / year ($242 / month)

Compared to national average: 2% lower

Wyoming

Annual: $4,392 / year ($366 / year)

Compared to national average: 49% higher

When going through your options, try to think in terms of sustainability and reliability of provider. Cheaper doesn’t always mean better, and more expensive doesn’t necessarily mean worse.

What’s important is that, depending on your lifestyle and the lifestyles of your family members, are you getting the health insurance you and they are most likely to need? Make sure you’re not looking just at what health insurance costs, but at what it’s worth.

James Donaldson

I like to blog about insurance, health and the great outdoors. Memphis born and raised.