Health insurance is very important for Americans to have to avoid financial devastation. The problem is that it can be a challenge to determine what is expensive vs affordable. This blog will go into more detail about the question of “is $200 a month a lot for health insurance”? We will take a dive into the various influences that determine health insurance costs and what that looks like overall when considering the average cost of health insurance per month.
Let’s look at the specific factors that can increase or decrease the monthly health insurance premiums. Age, location, amount of coverage, network and family size are the key components that make up the cost. In most cases, the older you are the more you will pay for the same plan than someone that is younger. This is based on the risk that you will have more health issues as you age. Also, healthcare cost can dramatically vary for different locations across the United States. A large metropolitan city with higher cost of property, workers wages, and cost of living will be more expensive than a smaller rural area with lower overall costs. The coverage level, which is based on metal tiers including bronze, silver and gold, varies as well. The bronze level is the more affordable plan with the gold level being more coverage but also more expensive. The network offered by the health insurance plan is another major influence on cost. An HMO based network is a more affordable option that requires you to have your PCP refer you out when needing specialist care. An HMO plan also typically has a narrower network. A PPO plan is more expensive and will give you open access to a wider network of doctors and hospitals and in most cases does not require additional referrals to schedule with a specialist.
Lastly, the larger the household the more expensive the plan will be. For example, a family of four will have to weigh in the age cost of 4 people compared to just a single person.
The question of “is $200 a month a lot for health insurance” requires perspective from the overall health insurance market. The affordability of a plan depends on the household’s specific circumstances which include household income, expenses and what they personally value in life. For a lower income family $200 per month may be an unrealistic amount to afford. However, for a high earning family $200 per month may be rather inexpensive.
When looking at the overall health insurance market a $200 per month plan is a mid-level price range. The factors listed above such as age and network will cause these levels to vary by region.
Even though a plan may cost $200 per month this does not mean that you will not incur additional health care costs when using the plan. You still must weigh in the deductible, doctor visits, RX and many more healthcare costs. A high deductible plan may cost less for the premium but will cost you more the more you utilize the coverage.
Many households that pay $200 per month for health insurance often are utilizing the ACA marketplace subsidies. These subsidies are based on a household’s income, ages, and family size. For example, a plan on the ACA marketplace may really cost over $1,000 plus per month but with a qualifying subsidy it can be reduced to a much lower amount. Some households qualify for a plan that is $0 per month.
For more information about ACA Health Insurance visit us at My Choice Health Insurance