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Small Business Employee Benefits and HR Blog

The Average Cost of Health Insurance

The average cost of health insurance in America varies significantly by how you get your health insurance (ex: through work or on your own) and how much your household earns. Here is a look at the average cost of health insurance in 2014.Average cost of health insurance

The Average Cost of Group Health Insurance

Group health insurance coverage is a type of health policy that is purchased by an employer and is offered to eligible employees of the company, and to eligible dependents of employees. The premium cost is usually split between the employer and employee.

In 2014, the national average cost to cover a single employee is $6,025/year ($502/month). The average cost to cover a family is $16,834/year ($1,402/month).

The cost of group health insurance is generally shared between the employer and employee. For single coverage, employees pay on average $1,080/year ($90/month) and the employer pays $4,945/year ($412/month). For family coverage, employees pay on average $4,824/year ($402/month) and the employer pays $12,010/year ($1,001/month).

 2014 Employee Contribution Employer Contribution Total Cost
Single Coverage $1,080/year $4,945/year $6,025/year
Family Coverage $4,824/year $12,010/year $16,834/year

 

The Average Cost of Individual Health Insurance

Individual health insurance is a type of health policy that an individual purchases for himself and/or his family - just like car insurance.

In 2014, the average individual health insurance premium purchased through the Health Insurance Marketplaces, before tax credits, was $346/month. Eighty-seven percent (87%) received discounts on their health insurance (via a “premium tax credit”) and paid an average of $82/month across all types of plans. For Silver plans, the most popular type of plan, 94% received tax credits and paid an average of $69/month.

Metal Level

% Who Selected Plan with Tax Credits

Average Premium Before Tax Credits

Average Tax Credit Amount

Average Premium after Tax Credits

Average % in Reduction After Tax Credits

Bronze

73%

$289

$221

$68

76%

Silver

94%

$345

$276

$69

80%

Gold

65%

$428

$220

$208

51%

Platinum

64%

$452

$232

$220

51%

All Levels

87%

$346

$264

$82

76%

For a more detailed look at health insurance rates by state, download this free guide: Individual Health Insurance: Facts and Figures (2014-2015).

Because of the affordability of individual health insurance, many businesses are dropping group health insurance and reimbursing employees for their individual health insurance premiums.

Questions about the average cost of health insurance? Leave a comment.

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