The Average Cost of Health Insurance in 2025

MoneyGeek researched national data and analyzed how health insurance rates change based on the type of insurance plan, the number of people covered and the location of that coverage, among other factors.

This national average is for private health insurance you buy on the government’s Health Insurance Marketplace created by the Affordable Care Act, often called Obamacare.

Many Americans qualify for subsidies that make buying health insurance on the Marketplace more affordable. You may also have lower-cost options if your employer offers health benefits or you're eligible for government insurance programs such as Medicaid or Medicare, which offer comprehensive plans like Medicare Advantage for affordable prices.

Private health insurance costs include monthly premiums that vary significantly depending on where you live.

Virginia has the lowest health insurance premiums, with a typical 40-year-old paying an average of $390 per month. On the other end, West Virginia has the highest average premiums at $864 per month.

Variation in rates stems from factors like how much competition there is in a given state, forcing insurers to offer attractive rates. Expenses may also vary because of the expected health costs of a population. For example, in states where people tend to be less healthy or where doctors and hospitals charge more, insurance companies set higher rates to cover those costs.

Average health insurance rates are only part of the story. Your actual plan may cost you much more or less than the typical person pays due to a variety of personal factors. However, thanks to federal subsidies, many people find their premiums affordable.

Not surprisingly, the more people in your family are covered by your health insurance plan, the more you’re likely to pay in premiums.

The average cost for a 40-year-old couple is $1,077 per month or about double the cost for an individual in that age range. On the other hand, a 40-year-old couple with one child under age 14 would pay an average of $1,398 per month, and a family of five would pay around $2,040.

To estimate the average family's health insurance cost, MoneyGeek used national averages by age and added the premiums together. Actual family premiums may vary.

It seems logical that families would stick together on health insurance. And together, you’re more likely to meet the out-of-pocket maximum, after which you shouldn’t have to pay out-of-pocket costs for covered services.

But some families might be better off on separate plans.

For example, if one spouse can get low-cost coverage through their job, but that plan may not be open to family members (or costs too much to add them), it may make sense for that spouse to use their employer-provided insurance while the rest of the family uses a Marketplace plan.

Most people need more health care as they age, and health insurance rates can increase for older people to cover those expected costs. However, the Affordable Care Act (ACA) has enforced a cap for health insurance costs for seniors, at no more than three times the amount a 21-year-old would pay.

MoneyGeek’s analysis demonstrates this increase by age, although figures do not include tax credits or other subsidies. The average premium for an 18-year-old was $396 per month compared to $781 for a 50-year-old and $1,187 for a 60-year-old. While most of these premiums have increased since 2022, some populations may be eligible for subsidies if they have low incomes, have retired early, or otherwise scaled back their working hours.

Of course, your specific healthcare requirements, the metal level you choose, and the number of people on your policy will also help determine your health insurance costs.

There are four types of health plans you can choose on the Marketplace, with varying degrees of flexibility and costs. The type of health plan and the level of coverage you choose impact how much you’ll pay for health insurance.

For example, you might be willing to pay more for easier access to a broader range of providers, such as through a Preferred Provider Organization (PPO) or Point of Service (POS) plan. Or, you may opt for less flexibility with a Health Maintenance Organization (HMO) or Exclusive Provider Organization (EPO) plan but score lower-than-average premiums.

Plans offered on the Health Insurance Marketplace are categorized into metallic tiers: Bronze (and Extended Bronze), Silver, Gold and Platinum.

In MoneyGeek’s analysis, the lowest average premiums for a 40-year-old shopper (other than for Catastrophic plans, which have strict eligibility rules and offer minimal coverage) was $417 per month for Bronze plans. The average Platinum plan, by contrast, costs $763 per month.

The metal tier corresponds to the value of the coverage or how health plans and members split the costs. The metals split between the insurance company and the individual as follows:

• Bronze plans: 60% insurer costs, 40% individual costs
• Silver plans: 70% insurer costs, 30% individual costs
• Gold plans: 80% insurer costs, 20% individual costs
• Platinum plans: 90% insurer costs, 10% individual costs
• These ratios are set by tier and based on expected spending for a typical health plan member.

What you can expect to pay for health insurance differs by the insurance company. Some insurers want to grow, so they offer more attractive rates. Others are more cautious and will charge more to be sure they can cover their members’ health care costs.

Among national carriers, rates can vary widely. For example, consider the following average premiums for a 40-year-old shopper looking at Silver plans:

• Kaiser Permanente: $401
• Friday Health Plans: $500
• Avmed: $674
• Oscar: $512

Premiums are not the only factor when choosing a health plan. Some of the most affordable plans can have coverage that falls short of your needs. The best health insurance companies can cost a bit more, but are surprisingly affordable and give you the best value for your money.

Consider the plan's total cost by looking at things like deductibles, coinsurance and out-of-pocket maximums. Additionally, check that your preferred doctors and facilities are in-network to save money and hassle.

Over the years, healthcare costs have been steadily increasing. U.S. health spending rose 9.7% in 2020 to reach $4.1 trillion, or $12,530 per person. This growth rate was significantly higher than the previous year's rate of 4.3%. The cause is due to several factors, such as aging and a less healthy population, inflation, the increasing demand for healthcare services and more.

The increasing costs of healthcare are also manifesting in health insurance. According to a survey from KFF, the average premium has grown by 18% for single coverage, and 20% for family coverage since 2017.

Review our frequently asked questions on average health insurance costs.