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Health insurance is a vital thing to have, especially for a family. However, it can be very expensive to get health insurance for a whole family. So, how expensive is health insurance going to cost for a family of four?
The average cost of health insurance for a family of four is $1,715 per month. However, the cost will vary depending on the health issues of the members on the plan and the tier chosen. The most common tiers available are silver, bronze, and gold or platinum.
Below, I will give you details about the different health plan tiers, the cost of health insurance through a few popular companies, and how you can find affordable health insurance for your family.
How Much Is Health Insurance (By Family Size)?
There are a number of different factors that are going to affect how much health insurance for your family of four is going to cost. These include:
- The number of people on a policy.
- The ages of the people on the policy.
- The selected tier of coverage.
- The level of federal subsidies you qualify for.
- The employer contribution (if health insurance is provided by your employer).
The two main factors that are going to affect the cost of healthcare for your family are the ages and the number of people on the policy. The average price for health insurance for a single 40-year-old adult is about $477 per month, while for a 40-year-old couple, it costs about $1,077 per month.
When you start factoring in children, the price for each child stays fairly low as long as they are under 14 years old. Once over 14 years old, the cost begins to increase slowly each year as they grow, with the average cost increase being around 4% a year.
| Family Size | Average Monthly Cost |
|---|---|
| Individual (40-Year-Old) | $477 |
| Couple (2 40-Year-Olds) | $1,077 |
| Couple w/ a Kid (Ages 0-14) | $1,230 |
| Couple w/ Two Kids (Ages 0-14) | $1,506 |
| Couple w/ Three Kids (Ages 0-14) | $1,682 |
| Couple w/ Four Kids (Ages 0-14) | $1,715 |
The Average Cost of Health Insurance by Age
As you get older, you are going to need more health care, and because of this, health insurance rates typically increase as you get older. Fortunately, the Affordable Care Act (ACA) places a cap on how expensive health insurance can be for seniors. Because of the ACA, health insurance for seniors can cost no more than three times what a 21-year-old would pay.
The average cost of a health insurance premium for an 18-year-old is $396 per month. Comparatively, the same health insurance plan premium costs $781 per month for a 50-year-old and $1,167 per month for a 60-year-old. However, these averages don’t include tax credits or other subsidies. These subsidies might apply to those who have low incomes, have retired early, or have otherwise reduced the number of hours they work.
Other factors that might change the cost include the plan tier and the number of people who are on the policy.
| Health Insurance Plan Member | The Average Monthly Cost for a Bronze Plan | The Average Monthly Cost for a Silver Plan | The Average Monthly Cost for a Gold Plan |
|---|---|---|---|
| Infant to 13 | $242 | $319 | $392 |
| Children age 14+ | $282 | $382 | $448 |
| Adult individual age 21 | $313 | $410 | $450 |
| Adult individual age 27 | $330 | $433 | $476 |
| Adult individual age 30 | $356 | $468 | $514 |
| Adult individual age 40 | $401 | $526 | $578 |
| Adult individual age 50 | $560 | $736 | $808 |
| Adult individual age 60 | $850 | $1,115 | $1,225 |
The Average Cost of Health Insurance by Metal Tier
The plans that are offered by health insurance companies are typically split into 4 different tiers, and each category is named after a metal. Bronze is the lowest level, and for a 40-year-old, the average price of a bronze plan will cost $417 per month. Meanwhile, for that same 40-year-old, and platinum plan will cost $763 per month. The metal tiers correspond to how much coverage you will receive and how much the health plan and you will split.
Bronze Plans
Bronze plans are going to be the cheapest plans available, and with this plan, the insurance agency will pay 60% and you will have to pay 40% of your medical costs. This type of plan is typically recommended for those who are younger and healthier.
Silver Plans
Silver plans are going to be the most common type of plan, with these plans being ideal for most families, as they offer good coverage while still not being too expensive. With silver plans, you will have to pay 30% of your medical care costs while the insurance provider will pay for the other 70%.
Gold Plans
Gold plans are going to be the best for those who are going to have high medical costs, as with these plans, you only have to pay 20% while the insurance provider pays 80%. For many companies, this is the highest tier of health plan, however, a few companies also provide a platinum option.
Platinum Plans
Platinum is the best plan, with insurance providers paying 90% of medical care costs. This plan is mostly going to be for those who are going o have high medical costs that they will have to pay frequently. These plans typically cost around $760 for just a single adult on the plan, but this plan gets extremely expensive as you add more individuals to it.
| Metal Level | Monthly Cost | Annual Cost | Maximum Out-of-Pocket |
|---|---|---|---|
| Bronze | $417 | $5,009 | $9,060 |
| Silver | $559 | $6,708 | $5,034 |
| Gold | $585 | $7,015 | $7,251 |
| Platinum | $763 | $9,151 | $2,503 |
The Average Cost of Health Insurance by Plan Type
There are four different types of health insurance plans that you can have; health maintenance organizations (HMOs), preferred provider organizations (PPOs), exclusive provider organizations (EPOs) and point-of-service (POS) plans. Each of these plans varies in cost and the type of coverage that they offer.
The majority of health insurance companies offer a few varieties of these plans, but typically they don’t offer all of them. The best health insurance plan will depend on what coverage you need. And while these 4 plan types are the most common, there are also a few other types of plans, including:
- High Deductible Health Plan (HDHP)
- Fee-for-Service Plans (FFP)
- Supplemental Health Insurance
- Short-Term Health Insurance
Health Maintenance Organizations (HMOs)
HMO plans are typically going to be the least expensive plans, but they are also the least flexible and offer the least amount of coverage. These plans will often restrict the health care facility and providers that you can use while still getting coverage and will only give coverage if you go to one of these facilities in an emergency situation.
HMOs also require that you have a primary care provider and that you receive a referral from before you visit a specialist. HMOs are best for those who have a tighter budget and don’t need very much specialty medical care. You should also expect to stick to a set network of healthcare providers.
The cost of a Health Maintenance Organization (HMO) plan for a family of four will depend on several factors such as the location, the specific plan chosen, and the ages of the family members. However, the average annual premium for employer-sponsored family coverage HMO plans is approximately $1,778 per month.
It’s important to note that this is just an average and the actual cost may be higher or lower than this figure depending on individual circumstances. It’s recommended to shop around and compare different HMO plans from various insurance providers to find the best coverage and price for your family’s specific needs.
Preferred Provider Organization (PPO)
PPOs are much more flexible than HMOs, as they don’t require that you go through a primary care provider in order to visit a specialist, although you may have to receive pre-approval in order to get specialty care. Also, with PPOs, you will be able to receive care from doctors and facilities that aren’t in the provider’s network, but you will often have to pay more when visiting these locations.
If your plan does cover out-of-network visits, you will have to submit a claim in order to receive any sort of reimbursement. The only other main difference between a PPO and HMO is the fact that PPO plans are more expensive, as they offer more flexibility. These plans are going to be best for those who need flexibility, as they have fewer rules and offer easier access to a wider variety of doctors and services.
The cost of a Preferred Provider Organization (PPO) plan for a family of four will also depend on several factors such as the location, the specific plan chosen, and the ages of the family members. However, the average annual premium for employer-sponsored family coverage PPO plans was $22,221 per year.
Exclusive Provider Organizations (EPO)
EPOs are another care plan that only allows in-network care providers to be used. The biggest difference between HMOs and EPOs is the fact that with EPOs, you typically have care providers to choose from. If you end up visiting a doctor or care provider outside of your network, you won’t receive coverage unless it is an emergency.
Sometimes, EPOs require you to have a primary care provider, however, they usually don’t have you fill out the paperwork like an HMO. EPOs in general, EPOs are slightly more flexible than HMOs. However, they are less flexible than other plans, and the cost is similar in this way. EPOs are great for those who are on a budget but want a bit more flexibility in their coverage.
The cost of an EPO plan for a family of four varies depending on factors such as location, the specific plan selected, and the ages of family members. On average, it will cost you $1,008 per month.
Point of Service (POS)
POS plans are a combination of HMO and PPO plans, as they have many of the limits and requirements of an HMO and some of the flexibility of a PPO. They have the limited set network that an HMO has, but you can go to other providers and pay more like you can with a PPO. You are also going to have to file a claim for reimbursement if you use an out-of-network care provider. The average monthly cost for the POS plan is $1,207 a month.
With a POS plan, you can see care providers nationwide, even if they are out of network. POS plans require you to get a referral from your primary care provider in order to see a specialist. POS plans typically fall between the price of HMO and PPO plans.
This type of plan is best for those who want to see out-of-network care providers, and for those who travel across the United States often.
The Average Cost of Health Insurance by Company
Depending on the health insurance company, you can get a variety of different prices. This is because some companies are looking to grow and are offering lower prices to entice new customers, while other companies are more cautious and are going to charge more for their health coverage.
Because of this, prices for different companies can vary greatly. For a 40-year-old, the average price of a silver health insurance plan will cost the following amounts:
- Kaiser Permanente: $401
- Friday Health Plans: $500
- Blue Cross Blue Shield: $590
- Wellcare: $1,011
You can use this information to estimate how much insurance will cost for your family of four.
However, the total cost of the health plan shouldn’t be the only factor that you take into consideration when finding a health plan, as sometimes these cheaper prices might have coverage that falls short of your needs. You should also look into things such as deductibles, coinsurance, and out-of-pocket maximums. You will also want to make sure that your preferred doctors and facilities are in-network to save money and time.
How Do I Find Affordable Family Health Insurance?
To find an affordable health insurance plan, figure out if employer-based health insurance is available to you. You will likely have to pay a little bit more than usual in order to add a spouse or family member to an employer-sponsored health plan, but it can end up being cheaper than getting your own plan. Exactly how much it will cost is unknown.
If everyone in your family is in good health, you can simply get a cheaper bronze or silver health plan with higher deductibles. If you have part of your family on an employer-sponsored health plan and your own plan for the rest of your family, you will have to be aware that you aren’t eligible for Affordable Care Act subsidies.
If you are looking to find a way to reduce the cost of your family’s health insurance, using cheaper plans like bronze HMO plans will save you several hundred dollars monthly, and finding subsidies that you qualify for can also help reduce the cost of health insurance plans.
Alternative to Health Insurance
When it comes to your healthcare, most people think that their only options are to pay for expensive Health Insurance or try out your luck being uninsured.
The great news is that you have a third option; You can join a Health Share plan that is affordable and meets your needs! Health Sharing programs are one of the most effective and affordable alternatives to Health Insurance.
If you don’t know what a Health Share is, you can start here to learn how it works and why it’s a great alternative to health insurance. If you are looking for affordable healthcare, I highly recommend checking out my article about the Best Health Share Plans.
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