Enrollment in the federal health insurance marketplace reached a record high this year. The increase was likely due to increased subsidies (premium tax credits) for the coverage and extended eligibility that was part of the American Rescue Plan passed in 2021.
But the tax credits are due to expire at the end of this year. The Urban Institute says that if the enhancements are not extended enrollees will spend hundreds of dollars more per person on premiums.
Many U.S. households do not have enough money available to cover the cost of a typical deductible in a private health plan, according to an analysis by the Kaiser Family Foundation. About a third of single-person households with private insurance in 2019 could not pay a $2,000 bill, and half could not pay a $6,000 bill, according to KFF.
As a side note, out-of-pocket costs can often be taken care of by using supplements. Vanderbilt Healthcare Solutions often helps our clients to erase the danger of having to deal with high deductibles and out-of-pocket maxes.
However, since most people do not work with a broker, nearly 1 in 10 adults – or roughly 23 million people – end up owing medical debt, according to KFF. This includes 11 million who owe more than $2,000 and 3 million people who owe more than $10,000.
Especially given inflation and other financial issues, the costs can be detrimental to many Americans. Premium contributions and deductibles totaled 11.6% of median income in 2020, up from 9.1% in 2010, according the Commonwealth Fund.
Americans spend more on health care than any other nation by a large margin ($12,318 per capita), according to the OECD; that’s $4,935 more than the next most expensive country, Germany, which spends $7,383 per capita.
Health care affordability isn’t just an issue for those who pay healthcare on their own or through the marketplace, it’s becoming a burden even to large employers who provide the benefit to their workers. A 2021 survey by Kaiser Family Foundation found that overall, large employers find healthcare costs excessive and that that the cost of providing health benefits to employees will become unsustainable in the next five to 10 years. Some 85% of respondents believe that there will need to be greater government roles in providing coverage and containing costs. One respondent noted in a follow-up interview, “if it’s not the government stepping in, who would it be?”
Especially for healthy individuals, it is worth looking at other options available in the open market. Vanderbilt Healthcare Solutions has helped many people find the type of plans that are not often talked about, but which are able to provide more affordable options that still do the job when it’s most needed.
Getting back to the typical types of insurance, the list below shows the average cost of health insurance in each of the 50 states, ranging from $831 a month in West Virginia, the most expensive state, to $309 a month in the cheapest state.
Using the rates and premiums for each plan, averages were calculated for a variety of variables such as metal tier, family size or county. Average costs per state are calculated from a silver plan for 40-year-old.
A number of factors contribute to the reason some states cost more than others. One of them is called “silver loading,” where insurers raise the premiums they charge for silver plans to offset the now-uncompensated cost of providing cost-sharing reductions. You can read more about silver loading at Brookings.
West Virginia is one of three states that doesn’t allow silver loading, and this is one of the reasons premiums are high here, as explained by the West Virginia Center on Budget and Policy. They also show how much more West Virginians will pay if the American Rescue Plan tax credits are allowed to expire at the end of the year.
1. West Virginia
- Monthly cost: $831
- Annual cost: $9,972
- Difference from national average: +53.72%
2. South Dakota
- Monthly cost: $811
- Annual cost: $9,732
- Difference from national average: +50.02%
3. Wyoming
- Monthly cost: $764
- Annual cost: $9,168
- Difference from national average: +41.32%
4. Vermont
- Monthly cost: $760
- Annual cost: $9,120
- Difference from national average: +40.58%
5. Louisiana
- Monthly cost: $728
- Annual cost: $8,736
- Difference from national average: +34.67%
6. Alaska
- Monthly cost: $715
- Annual cost: $8,580
- Difference from national average: +32.26%
7. New York
- Monthly cost: $713
- Annual cost: $8,556
- Difference from national average: +31.89%
8. Nebraska
- Monthly cost: $685
- Annual cost: $8,220
- Difference from national average: +26.71%
9. Oklahoma
- Monthly cost: $635
- Annual cost: $7,620
- Difference from national average: +17.46%
10. North Carolina
- Monthly cost: $634
- Annual cost: $7,608
- Difference from national average: +17.28%
11. Missouri
- Monthly cost: $620
- Annual cost: $7,440
- Difference from national average: +14.69%
12. Florida
- Monthly cost: $585
- Annual cost: $7,020
- Difference from national average: +8.21%
13. Alabama
- Monthly cost: $579
- Annual cost: $6,948
- Difference from national average: +7.1%
14. Nevada
- Monthly cost: $578
- Annual cost: $6,936
- Difference from national average: +6.92%
15. Arizona
- Monthly cost: $577
- Annual cost: $6,924
- Difference from national average: +6.73%
16. Texas
- Monthly cost: $575
- Annual cost: $6,900
- Difference from national average: +6.36%
17. Connecticut
- Monthly cost: $564
- Annual cost: $6,768
- Difference from national average: +4.33%
18. Utah
- Monthly cost: $563
- Annual cost: $6,756
- Difference from national average: +4.14%
19. Illinois
- Monthly cost: $556
- Annual cost: $6,672
- Difference from national average: +2.85%
20. Delaware
- Monthly cost: $555
- Annual cost: $6,660
- Difference from national average: +2.66%
21. California
- Monthly cost: $537
- Annual cost: $6,444
- Difference from national average: -0.67%
21. New Jersey
- Monthly cost: $537
- Annual cost: $6,444
- Difference from national average: -0.67%
23. Massachusetts
- Monthly cost: $535
- Annual cost: $6,420
- Difference from national average: -1.04%
24. Kansas
- Monthly cost: $534
- Annual cost: $6,408
- Difference from national average: -1.22%
25. Iowa
- Monthly cost: $533
- Annual cost: $6,396
- Difference from national average: -1.41%
26. North Dakota
- Monthly cost: $524
- Annual cost: $6,288
- Difference from national average: -3.07%
27. Idaho
- Monthly cost: $516
- Annual cost: $6,192
- Difference from national average: -4.55%
28. Wisconsin
- Monthly cost: $514
- Annual cost: $6,168
- Difference from national average: -4.92%
29. Virginia
- Monthly cost: $512
- Annual cost: $6,144
- Difference from national average: -5.29%
30. Mississippi
- Monthly cost: $511
- Annual cost: $6,132
- Difference from national average: -5.48%
31. Tennessee
- Monthly cost: $508
- Annual cost: $6,096
- Difference from national average: -6.03%
32. Pennsylvania
- Monthly cost: $498
- Annual cost: $5,976
- Difference from national average: -7.88%
33. Hawaii
- Monthly cost: $490
- Annual cost: $5,880
- Difference from national average: -9.36%
33. Ohio
- Monthly cost: $490
- Annual cost: $5,880
- Difference from national average: -9.36%
35. New Mexico
- Monthly cost: $480
- Annual cost: $5,760
- Difference from national average: -11.21%
36. Montana
- Monthly cost: $479
- Annual cost: $5,748
- Difference from national average: -11.39%
37. Kentucky
- Monthly cost: $478
- Annual cost: $5,736
- Difference from national average: -11.58%
38. Oregon
- Monthly cost: $475
- Annual cost: $5,700
- Difference from national average: -12.13%
39. Maine
- Monthly cost: $465
- Annual cost: $5,580
- Difference from national average: -13.98%
40. Washington
- Monthly cost: $443
- Annual cost: $5,316
- Difference from national average: -18.05%
41. South Carolina
- Monthly cost: $436
- Annual cost: $5,232
- Difference from national average: -19.35%
42. Indiana
- Monthly cost: $433
- Annual cost: $5,196
- Difference from national average: -19.90%
43. Arkansas
- Monthly cost: $419
- Annual cost: $5,028
- Difference from national average: -22.49%
44. Rhode Island
- Monthly cost: $413
- Annual cost: $4,956
- Difference from national average: -23.60%
45. Michigan
- Monthly cost: $410
- Annual cost: $4,920
- Difference from national average: -24.16%
46. Colorado
- Monthly cost: $409
- Annual cost: $4,908
- Difference from national average: -24.34%
47. Minnesota
- Monthly cost: $389
- Annual cost: $4,668
- Difference from national average: -28.04%
48. Maryland
- Monthly cost: $365
- Annual cost: $4,380
- Difference from national average: -32.48%
49. New Hampshire
- Monthly cost: $360
- Annual cost: $4,320
- Difference from national average: -33.41%
50. Georgia
- Monthly cost: $309
- Annual cost: $3,708
- Difference from national average: -42.84%
After going through all of this, I have to remind you, the reader, how important it is to work with a qualified broker who is aware of all different options that are available. But we will talk more about that in another article.
If you or someone you know is dealing with high insurance costs or bad plan options, please make sure to contact us via phone, text, or email:
Phone:
Midwest: (713) 331-9993
Southwest: (480) 382-8119
East: (561) 331-1137
