In response to rising costs of health care, premiums for health insurance have increased dramatically in the last decade. Obamacare, also known as the ACA, has made health insurance more accessible for Americans. It created “exchanges” or health insurance marketplaces and provided subsidies to those with lower incomes.
However, most middle-class Americans don’t qualify for subsidies. It is important to know if you are eligible for subsidies. If you do not qualify for subsidies, what is the average cost of non-subsidized insurance that you could expect to pay? eHealth can help walk you through health insurance costs without a subsidy, and when you’re ready, get you started with an individual or family health insurance plan that fits your needs and budget
Are you eligible for a subsidy that lowers the cost of your health insurance?
You must have a minimum income of between 100% and 400% to be eligible for federal tax subsidies in 2020. You should earn between:
- If you are single, $12,490 to $49,000.
- For a couple, $16,910 to $67,640
- For a family of four, $25,750 to $103,000
Your income for the entire year is what determines the subsidy. Therefore, you will need to calculate how much you will earn over the coverage year. Learn more about how to calculate your Subsidy Eligibility here
What is the average price of non-subsidized insurance for health in 2020?
What is the average monthly cost of your income if it exceeds 400% FPL (or 600% if you live in California)? A benchmark plan, such as the “Silver” one, has an average monthly premium of $462. Subsidized, it is $199. Subsidy assistance can reduce monthly premiums for ACA Marketplace plans. The actual cost of your plan will vary depending on where you live, your age and the health plan you choose.
Have a closer look. In a recent eHealth ACA Index report, we tracked costs and shopping trends among ACA plan enrollees who bought non-subsidized health insurance at ehealth.com during the nationwide open enrollment period (November 1, 2019 through December 15, 2019) for 2020 coverage.
What is the average price of health insurance for a 4 member family?
For non-subsidized insurance, consumers who buy for a family with four members pay an average monthly premium cost of $1,437. This is a slight increase of $1,403 from 2019.
Monthly premiums can be affected by the plan you choose. The monthly premium is usually higher if the plan provides more coverage. Only the Bronze family plan premiums have decreased for family coverage (two or more people) between 2019 and 2020.
However, monthly premiums only represent a small portion of the overall cost of health insurance. Also, consider the annual deductibles. These are the out-of pocket costs that you pay before your insurance pays for most services. In 2020, the average family plan deductible was $8,439. This is a 5% increase over the previous year. For a family of 4, the average family deductible was $7,767.
For a family of 4, the bottom line is for non-subsidized insurance on health insurance
For a family of four, an ACA plan can be purchased as non-subsidized insurance. You will pay approximately $25,000 per year in premiums. This equates to an annual premium cost of $17,244 for family health insurance, and $7,767 for deductible expenses.
eHealth acknowledges that rising costs of health care are alarming for many families. Don’t let this discourage you from looking for family health insurance that you can afford. We can help you find the right level of coverage that is affordable for you and your family. You can also use our subsidy calculator, which will help you determine if you are eligible for a tax rebate. eHealth:
- Our online service allows you to compare individual and family insurance options. You can also chat with an eHealth representative whenever you have a question.
- Talk to an eHealth licensed agent for insurance. They will help you find affordable coverage that suits your needs and those of your family.
Explore your individual and family health insurance options today. You don’t have to pay anything to use eHealth services.
This article contains general information that may not have been updated since publication. Instead of using this article as legal advice, consult your tax, accounting or tax professional.
