In reaction to the rising cost of healthcare services, health insurance premiums have grown considerably over the last decade. By introducing health insurance markets or “exchanges” and giving government subsidies to lower-income Americans, the Affordable Care Act (also known as Obamacare) helps to make health insurance more accessible and affordable to more Americans.
Many Americans discovered that the subsidies did not apply to them, or that they were unaware that they were eligible for federal aid for their healthcare plan. The affordability issue persisted, with a huge percentage of people remaining uninsured. With the introduction of the American Rescue Plan Act in March 2021, that changed.
Do You Qualify for an American Rescue Plan Act Subsidy?
On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. The act aims to provide government support to persons affected by COVID-19, including aid with health insurance coverage. ARPA altered the way subsidies were calculated, allowing more Americans to receive federal help with their healthcare plans.
People who made more than 400 percent of the federal poverty level (FPL) were immediately barred from receiving any subsidies prior to the ARPA. The “subsidy cliff” was born out of this. The ARPA raised subsidies for persons earning between 100 percent and 400 percent of the FPL, in addition to eliminating the subsidy cliff.
The number of Americans eligible for subsidies increased by 20%, or millions of people, as a result of these modifications. People earning more than 400 percent of the federal poverty level can no longer pay more than 8.5 percent of their income for a silver premium plan. Here’s how to maintain your health insurance if you lose your job.
A zero-premium silver plan is now available to people who earn between 100 and 150 percent of the FPL. Premiums are also reduced for those who earn between 150 and 400 percent of the federal poverty level.
eHealth can assist you in finding a plan that suits your requirements and budget if you are one of the millions who now qualify for a subsidy or can receive further support under the ARPA. With 24/7 service and the opportunity to sign up for a plan online, through their live chat, or by phone, their licensed brokers can help you get health insurance in any state.
What Will Be the Average Cost of Non-subsidized Health Insurance?
Despite the increases, there are still people and families who are not eligible for government subsidies and want to know how much health insurance will cost them without government support. According to the most recent eHealth Index Report, health insurance rates for individuals of all ages declined between 2020 and 2021 for Americans of all ages. Families, on the other hand, did not notice a price cut for their plans.
The eHealth ACA Index analysis examined the costs and purchasing habits of ACA plan subscribers who purchased non-subsidized health insurance for 2021 coverage at ehealth.com during the nationwide open enrollment period.
What will you have to pay if you are not eligible for health insurance subsidies in 2022? The average non-subsidized monthly health insurance cost for one person on a benchmark plan (i.e. “Silver”) is $450. Premiums for ACA Marketplace plans vary by state and are subject to subsidies.
The average cost of health insurance in the United States depends on your age, location, and the health plan choice. The health insurance premium for an American college student can’t be the same with the one that has a family.
How Much Does Health Insurance for a Family of Four Cost on Average?
Consumers who purchase non-subsidized health insurance for a family of four pay an average monthly premium of $1,437. The monthly premium amount has increased slightly from $1,403 in 2019.
The plan you choose can have an impact on your monthly premiums. The higher the monthly cost, the more coverage the plan provides. Only the Bronze family plan premiums fell between 2019 and 2020 for families with two or more people.
However, monthly premiums account for only a portion of the total cost of health insurance. Consider the expense of annual deductibles, which are the fees you pay out of pocket before your health plan pays for the majority of covered services. In 2020, the average family plan deductible (across all family sizes) was $8,439, up 5% from the previous year. For a family of four, the average annual family deductible in 2020 was $7,767.
What is the Average Premium of Non-subsidized Health Insurance for a Household of Four?
If you buy an ACA plan for a family of four as non-subsidized health insurance, you can expect to pay around $25,000 in premiums and deductibles for the year. This equates to an annual premium cost of $17,244 for a family of four and deductible costs of $7,767. This perfectly explains why healthcare insurance is expensive in the U.S.
Most families are concerned about the rising expense of healthcare. But don’t let the prospect of getting affordable family health insurance deter you. Working with a reliable health insurance agent near you in the United States can help you determine the most appropriate amount of coverage for you and your family at the most affordable price.