Health insurance is the largest insurance expense for most Americans. Costs vary enormously based on whether you get coverage through an employer, the ACA marketplace, or individually. Here’s the full breakdown.
Table of Contents
Average Health Insurance Costs (2026)
Coverage Source
Individual (Monthly)
Family (Monthly)
Individual (Annual)
Family (Annual)
Employer-sponsored (employee share)
$134
$584
$1,608
$7,008
Employer-sponsored (total cost)
$696
$1,938
$8,352
$23,256
ACA Marketplace (before subsidies)
$477
$1,480
$5,724
$17,760
ACA Marketplace (after avg subsidies)
$125
$420
$1,500
$5,040
COBRA
$696
$1,938
$8,352
$23,256
Short-term health insurance
$150-$350
$400-$900
$1,800-$4,200
$4,800-$10,800
Marketplace Plans by Metal Tier
Metal Tier
Monthly Premium (40-yr-old)
Deductible
Out-of-Pocket Max
Actuarial Value
Best For
Catastrophic
$280
$9,450
$9,450
~57%
Healthy under 30
Bronze
$380
$7,500
$9,450
60%
Low premiums, rarely use care
Silver
$520
$5,000
$9,450
70%
Moderate use, subsidy eligible
Gold
$640
$1,500
$9,450
80%
Frequent care, predictable costs
Platinum
$780
$250
$2,500
90%
High use, lowest out-of-pocket
Silver plans are the sweet spot for most people because cost-sharing reductions (CSR) lower deductibles and copays if your income is 100-250% of the poverty line.
Health Insurance Cost by Age
Age
Avg. Monthly Premium (Silver Plan, Before Subsidies)
Age Rating Factor
21
$310
1.000
25
$316
1.004
30
$340
1.135
35
$380
1.259
40
$428
1.427
45
$490
1.600
50
$575
1.786
55
$680
2.230
60
$800
2.714
64
$920
3.000
Under ACA rules, the oldest enrollees can only be charged 3x what the youngest are charged.
Health Insurance Cost by State
State
Avg. Monthly Premium (Silver, 40-yr-old)
vs. National Avg.
Wyoming
$720
+51%
West Virginia
$680
+43%
Alaska
$660
+38%
Nebraska
$640
+34%
Vermont
$620
+30%
Alabama
$600
+26%
Oklahoma
$580
+22%
North Carolina
$560
+17%
Tennessee
$540
+13%
South Dakota
$530
+11%
Mississippi
$520
+9%
Missouri
$510
+7%
National Average
$477
—
Texas
$470
-1%
Florida
$460
-4%
Georgia
$450
-6%
Arizona
$430
-10%
Indiana
$420
-12%
Ohio
$410
-14%
Virginia
$400
-16%
Pennsylvania
$390
-18%
Michigan
$380
-20%
Colorado
$370
-22%
Illinois
$360
-25%
Washington
$350
-27%
California
$340
-29%
New York
$330
-31%
Minnesota
$310
-35%
Maryland
$300
-37%
Massachusetts
$290
-39%
New Hampshire
$280
-41%
ACA Subsidy Income Limits (2026)
If you buy through the marketplace, premium tax credits reduce your cost:
Household Size
Max Income for Any Subsidy
Income for Max Subsidy
1 person
No cap (expanded through 2025 IRA)
$15,060 (100% FPL)
2 people
No cap
$20,440
3 people
No cap
$25,820
4 people
No cap
$31,200
5 people
No cap
$36,580
6 people
No cap
$41,960
Under current rules, no one pays more than 8.5% of their household income on the benchmark Silver plan premium.
Household Income (% of FPL)
Max % of Income for Premiums
Up to 150%
0-4%
150-200%
4-6.5%
200-300%
6.5-8.5%
300-400%
8.5%
400%+
8.5% (with expanded subsidies)
Employer Health Insurance Costs
Metric
Individual Coverage
Family Coverage
Total annual premium
$8,352
$23,256
Employer pays
$6,744 (81%)
$16,248 (70%)
Employee pays
$1,608 (19%)
$7,008 (30%)
Average deductible
$1,735
$3,470
Average out-of-pocket max
$4,800
$9,600
Employer Plans by Type
Plan Type
Avg. Premium (Employee Share)
Deductible
Network Flexibility
HMO
$120/mo
$1,500
Must use network, need referrals
PPO
$155/mo
$1,400
In/out of network, no referrals
EPO
$140/mo
$1,600
Network only, no referrals
HDHP with HSA
$95/mo
$2,800
Varies; paired with HSA
POS
$135/mo
$1,500
Network preferred, referrals needed
HDHP + HSA Strategy
High-deductible plans paired with HSAs offer triple tax benefits:
Feature
2026 Limits
HDHP minimum deductible (individual)
$1,650
HDHP minimum deductible (family)
$3,300
HSA contribution limit (individual)
$4,300
HSA contribution limit (family)
$8,550
Out-of-pocket max (individual)
$8,300
The HSA is sometimes called the “stealth IRA” because contributions are tax-deductible, growth is tax-free, and qualified withdrawals are tax-free.
