How Much Does Health Insurance Cost?
The cost of annual premiums is $7,470 for individual coverage and $21,342 for family coverage, these are health insurance costs in 2020.
On average, annual health insurance for individual coverage in small firms is similar to that of large firms ($7,483 for small firms and $7,466 for large firms). On the other hand, family coverage for small firms is smaller compared to family coverage in large firms ($20,438 for small firms and $21,619 for large firms).
Of course, these costs are just an average of how much people spend on their health insurance, moreover, said costs are not classified under a specific health insurance plan.
Health insurance plans would each have varying costs and this is where people should acquaint themselves with the term premium. Premium refers to the fee that people have to pay to get and keep their own health insurance.
People may choose to pay for the entire premium or half of it. It is common for employers to pay for half of the premium as well. Then there are individual or family coverages that the federal government would pay for if they qualify for the premium subsidy (e.g. if you buy a premium through Covered California).
The payment for premiums usually happens every month, but of course, the frequency of payments and cost of the health insurance would vary per person. For instance, age would be a factor, children would have more benefits compared to adults (e.g. dental and vision coverage), the location of where a person lives, cost-sharing, and the number of family members included in the coverage are all factors to the total cost of a health insurance.
Common Health Insurance Offerings and Coverage
There are three types of plans that are usually being offered, namely, these are indemnity plans, managed care plans, and consumer-driven plans.
A person with this plan would pay for a doctor directly, show their insurance, and then receive half of the total cost from the insurance company. This type of plan does not include preventive care (e.g. annual physical exams).
Managed care plan
This type of insurance is usually given by an employer. Managed health care plans would include the following: HMO, PPO, POS, and EPO.
This type of plan grants a person the chance to control where their money goes when it comes to their health care cost. The downside of this would be the deductible’s high price.