How Much Does Health Insurance Cost? Ways to Reduce the Expense

The cost of health insurance is a concern for most people, especially those who are looking for insurance on their own. Even for families with employer-sponsored insurance plans, health insurance costs can be staggering; the average cost of employer-provided health insurance for a typical family is over $13,000 per year, even with the favorable rates available to most employers. Yet many advertisements claim that affordable health insurance is readily available, leading many families to wonder, "How much does health insurance cost?" While the high price tag of health insurance can be intimidating, there are ways to make it more affordable for individuals and families who must venture into the health insurance market on their own.

One lower-cost option for individuals and families in good health is to obtain coverage for catastrophic health expenses only. These plans cover only major medical expenses like hospital stays or surgery, and do not provide any coverage for routine doctor’s visits, prescription medications, or ordinary care, although discount plans are sometimes available that allow the insured individuals to obtain the negotiated group rates for these services. Indemnity health insurance plans, by contrast, offer limited benefits on all health care services up to a specified maximum annual benefit. For example, an indemnity plan might only pay $500 per day for hospital stays, up to a predetermined maximum of $2,500; thus, after the fifth day of hospital care, the patient would be responsible for all costs of the treatment. These plans are lower in cost because they limit the insurance company’s liability, but are easier to obtain for the same reason; even those with pre-existing conditions can often qualify for these plans.

So, how much does health care insurance cost? It varies depending on the level of coverage, the maximum annual benefit, any pre-existing conditions of the insured, and how high a deductible the consumer is willing to accept. In some cases, health insurance can be obtained at relatively low cost through a national organization or affiliation; this can reduce the cost of insurance to an affordable level in some cases. By carefully weighing the options and understanding the different types of health insurance, consumers can be certain they’ve obtained the best deal for their health care needs.