How much does health insurance cost? Citizens across the United States of America pay all premiums for
health insurance, but these monthly or annually paid premiums vary greatly, as these premiums are not
valued according to health status or gender, thanks to the Affordable Care Act – except for some
exceptions – but rather according to several factors that we will address below.
Factors affecting the value of the insurance premium:
Many factors affect the size of payments for health insurance, which are not controlled, so it would be good to understand what these factors are. These factors are:
- State and federal laws, which determine what must cover, and the amount of expenses that insurance will incur.
- Will the insured get insurance through his job or personally.
- Is the insured’s salary high or low. Low-paid workers tend to pay more employers’ way, but they may pay less than the exchange route because of subsidies.
- The workload of the insured. Insurance is usually cheaper for larger companies.
- The state in which the insured person lives.
- Is the insured living in rural or urban areas? Premiums tend to decrease in urban areas.
- The district where the insured person lives. Some provinces have a single plan, and competition is greater elsewhere, which means lower prices.
- Type of insurance plan. Each of the preferred service delivery organizations and platinum plans offered by the Federal Health Insurance Market tend to be more expensive.
- Age. Older people pay 3 times as much as younger people.
- Smoking, with smokers paying 50% higher premiums.
- Operator coverage contributes the largest share of factors determining the cost and coverage of insurance coverage.
Employees’ health insurance premiums:
If you work for a major company, the cost of your health insurance may be equal to the price of a new
car. According to The Caesar Family Foundation Research (KFF) published on September 29, 2019, on the
health privileges of business owners, it was found that:
The average annual premium for health coverage for a family of four is $20,576, which is roughly equal to the price of the 2019 Honda Civic Model.
On average families bear about $6015 of that cost, which means employers bear 71% of the premium value.
Employers pay $7,188 in premiums per employee, while an employee bears $1,242, equivalent to 18% of the value of insurance premiums.
The average cost of the plan includes all kinds of plans available such as:
- Health conservation organizations’ plans.
- Service point plans.
- High deductible health plans with savings options.
The insurance plan of preferred service providers is the most common, offering 44% of
coverage provided to workers, followed by high-deductible health plans with savings options, such as a
health savings account, and offering 30% of coverage for workers.
Of course, what employers spend on health for their employees affects their wages, so
employees bear the burden of paying insurance premiums more than the figures show. In fact, the high
cost of health is one of the reasons why wages have not increased significantly over the past two decades.
At the same time, employees must pay premiums from their income before tax is calculated,
but their insurance burdens may be lower than those from federal health markets, or from
states’ health insurance exchanges.
The type of insurance plan chosen by employees affects the size of premiums, accrued
deductions, the choice of hospitals and the type of health service provided to them, and their access to health savings accounts.
In the case of families, when a couple gets an offer from their employers, they may find that
one of the two offers is better for the whole family, so it is necessary to compare the two offers well. A
partner who will not use their insurance offer can reject this offer and benefit from its value. If the couple is without children, they can choose between their individual plans.
Individual health insurance premiums on insurance exchanges:
At the time of writing, the Government Health Care website did not announce premiums for insurance
plans on insurance exchanges. However, on October 22, the U.S. Department of Health announced a fall
in premiums and a rise in the number of plans available for 2020.
This year’s insurance exchanges will offer plans across 175 service providers instead of 132 two
years ago However, this is still lower than the number of service providers in 2016 at 237, and the
Ministry’s media sector has announced changes in instalments of individuals registered from the age of
27 in the so-called reference plan. as part of the current Administration’s debate on improving market conditions.
The Reference Plan is the second lowest cost of the Silver Plan, available through the Health
Insurance Exchange in a given area, and varies from state to state. The Reference Plan is called “The
Reference Plan”, which is used by the Government – besides income – to determine the amount of
support due on premiums.
The Ministry of Health announced an average reduction of the second lowest cost of the silver plan, by 4% from 2019 to 2020, on the government healthcare website.
6 states have experienced a two-digit decline in the average cost of premiums, including
Delaware 20%, Nebraska 15% North Dakota 15%, Montana 14%, Oklahoma 14% and Utah 10%.
But this does not explain how much the 2020 insurance premiums have changed for individuals enrolled from the age of 50, who buy bronze plans.
Importance of support (subsidies):
Individuals who receive their insurance from markets incur lower premiums than through the
premium tax credit program, or so-called subsidies. This credit was due 88% of people registered on the
government health care website in 2019.
These subsidies are a monthly government credit on health insurance premiums to facilitate these
premiums for individuals. The government pays a portion of the premium directly to insurance
companies, while the rest of the premium is paid by individuals.
Individuals receive the tax credit provided to premiums in a manner of three, either in equal amounts per
month, or in different quantities per month (which is appropriate for individuals with irregular incomes),
or in the form of a credit to cover income tax, when filing the annual tax file, which means a lower tax or greater exemptions. The tax credit is designed to facilitate the payment of insurance premiums, based on the number of family members and the level of income.