FAQ – How Much Does Individual Health Insurance Cost?
By: Amy Pennza, Zane Benefits, February 2017
Many people assume that individual health insurance, which is insurance you purchase on your own, is more expensive than group health insurance, which is a policy an employee gets through their company.
So how much does individual health insurance cost? How does it stack up against company-based group health insurance? Data shows that individual health insurance is, on average, more affordable than group coverage. Furthermore, the passage of a new federal law in 2016 created a third health insurance option for small businesses to offer their employees that can help businesses fix their health benefit costs.
How Much Does Company-Based (Group) Health Insurance Cost?
Published by the Kaiser Family Foundation, the 2016 Employer Health Benefits Survey provides key insights into group health insurance trends and costs.
-Average monthly premiums for self-only coverage in 2016: $536
-Average monthly premiums for family coverage in 2016: $1,511
The cost of the average family premium increased by more than 3 percent compared to 2015. The cost of the average premium for single coverage didn’t change enough to be significant.
How Much Does an Individual Health Insurance Policy Cost?
Now let’s take a look at the cost of individual health insurance. On average, the national cost in 2017 is $393/month for single coverage.
While the cost of individual health insurance has increased by 99 percent for single coverage since 2013 (and 140 percent for family coverage), individual health insurance remains more affordable on average than group coverage through a company.
According to data gathered by eHealth, the average health insurance cost for single coverage premiums in 2017 is $393 per month. For family coverage, the cost for premiums in 2017 is $1,021 per month.
Group Health Insurance Cost vs. Individual Health Insurance Cost
When you put them side by side, it’s easy to see that individual health insurance tends to be cheaper than a company-based policy—particularly for single coverage.
