Average Cost of Health Insurance (2023)
The average cost of health insurance in the U.S. is $560 per month.
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In 2023, the average cost of individual health insurance is $560 per month for a 40-year-old on a silver plan. That's a 4% increase from the 2022 plan year.
Health insurance premiums have risen dramatically over the past decade. While more variables were in play a decade ago, the number of factors that can impact your health insurance premiums decreased with the Affordable Care Act.
Average cost of health insurance
One of the primary factors in your individual health insurance costs is your location, as prices will vary depending on the state and county in which you live. In this first table, we look at health insurance premiums for 2023 and how they differ by state.
How much does health insurance cost in my state?
State | Monthly cost | % change from average |
|---|---|---|
| National | $560 | – |
| Wyoming | $882 | 57.47% |
| West Virginia | $871 | 55.50% |
| Alaska | $822 | 46.75% |
| South Dakota | $792 | 41.40% |
Policy premiums are for a 40-year-old applicant on a silver plan.
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How much is health insurance in 2023?
From 2022 to 2023, health insurance rates across the nation increased by 4%. Georgia saw the largest year-over-year jump in health insurance costs for a 40-year-old on a silver plan — increasing by 20%. Including Georgia, 36 states had their rates increase on average from 2022 to 2023.
Year-over-year rates decreased the most in Virginia and Louisiana, which fell by 17% and 10%, respectively. Overall, 13 states experienced a decrease in health insurance premiums. One state — Vermont — saw no year-over-year change.
Change in monthly health insurance costs
Average health insurance premiums by tier
Health insurance plans are separated into tiers based on the proportion of health care costs the insurance plan is expected to cover.
The silver plan falls around the middle, with moderate deductibles, copays and coinsurance. The catastrophic and bronze plans offer the smallest amount of coverage, while platinum plans offer the greatest.
The average rates paid for health insurance plans generally are inversely related to the amount of coverage they provide, with platinum plans being the most expensive and catastrophic and bronze plans being the cheapest. The following table shows the average rates a 40-year-old would pay for individual health insurance based on the tier. Older people would see their rates increase according to the age scale set by federal guidelines.
Monthly health insurance cost by tier
Tier | 2023 rate | 2022 rate | % change |
|---|---|---|---|
| Catastrophic | $332 | $316 | 5.20% |
| Bronze | $440 | $398 | 10.61% |
| Silver | $560 | $542 | 3.29% |
| Gold | $604 | $594 | 1.59% |
| Platinum | $737 | $685 | 7.55% |
Policy premiums are for a 40-year-old applicant. Expanded bronze was omitted due to a lack of data across states.
Average health insurance rates by plan type
Another distinction that can change the rates you pay is the type of network the plan uses.
Depending on whether the plan is a health maintenance organization (HMO), preferred provider organization (PPO), exclusive provider organization (EPO) or point of service (POS), access to health care providers will be managed in different ways.
HMOs tend to be the most restrictive about which doctors you can see and what you need to do to see them. This usually means that the insurers save on your cost of care and provide lower premiums.
Monthly health insurance cost by plan type
Type | 2023 rate | 2022 rate | % change |
|---|---|---|---|
| HMO | $480 | $457 | 5.03% |
| PPO | $576 | $522 | 10.25% |
| EPO | $507 | $508 | -0.27% |
Policy premiums are for a 40-year-old applicant. POS plans were omitted due to a lack of data across states.
Cost of private health insurance
Private health insurance is also called individual health insurance or Affordable Care Act coverage. Thus, the costs provided on this page apply to the same type of coverage, regardless of the name. If you're not enrolling in a government-backed plan like Medicare or Medicaid, you’re buying private health insurance.
Nationally, the average monthly cost of private health insurance is $560 for a 40-year-old on a silver plan.
The average cost of private health insurance varies based on several factors, including how you buy your plan. When you buy private health insurance through a state or federal exchange, you could be eligible for subsidies to help with monthly plan payments and other insurance costs.
You can also buy private health insurance directly from an insurance company through an agent or broker. These are sometimes called "off-exchange" policies and include both Affordable Care Act plans and short-term medical insurance. Off-exchange plans don’t qualify for cost-saving subsidies. Before you buy, it's a good idea to compare on- and off-exchange plans to see which option will save you money.
Factors that impact health insurance rates
For a particular health insurance plan, the cost of coverage is determined by certain factors set by law. States can limit the degree to which these factors impact your rates. For instance, some states like California and New York don't allow the cost of health insurance to differ based on tobacco use.
- Age: The health care cost per person covered by a policy is set according to their age, with rates increasing as the individual gets older. Children through age 14 will cost a flat rate to add to a health plan, but premiums typically increase annually beginning at age 15.
- Where you live: Health insurance companies determine the set of policies offered and the cost of coverage based on the state and county in which you live. A resident of Miami-Dade County in southern Florida, for instance, may pay lower rates for the same policy than a resident of Jackson County in the Florida Panhandle.
- Smoking/tobacco use: If you smoke, you could pay up to 50% higher rates for health insurance, though the state determines the maximum increase.
- Number of people insured: The total cost of a health plan is set according to the number of people covered. For example, a family of three, with two adults and a child, would pay a much higher monthly health insurance premium than an individual.
As noted earlier, your tier and plan type also impact health insurance premiums.
Frequently asked questions
In 2023, the average cost of health insurance is $560 a month for a silver plan. However, costs will vary by location. Insurance is expensive in Wyoming, West Virginia and Alaska, averaging more than $800 a month. States with cheaper health insurance include New Hampshire, Maryland and Minnesota, averaging around $400 or less a month. Compare quotes in your state.
The average cost of health insurance between 2022 and 2023 increased by 4%.
A bronze health insurance plan costs an average of $440 a month on the health insurance marketplace. However, subsidies can lower your monthly costs. If you earn $30,000 a year, a bronze plan could cost $71 a month. If you earn $45,000, the average cost is $254.
The cost of private health insurance varies based on factors such as age and where you live. For example, in Wyoming, a 40-year-old pays an average of $882 a month for a silver plan, while the same plan in New Hampshire costs an average of $372. Your cost also depends on the type of plan you buy, such as an HMO or PPO, and the level of coverage.
Methodology
Health insurance premiums and plans in the above report were aggregated from public use files (PUF) on the Centers for Medicare & Medicaid Services (CMS) government website. Plans and providers for which county-level data was included in the CMS’ Crosswalk file were used in our analysis; those excluded from this dataset may not appear. Separately, data was aggregated from the websites of state-run marketplaces that don’t utilize the federal marketplace.
Using the rates and premiums for each plan, averages were calculated for various variables. Average costs per state are for silver plans for 40-year-olds.
Correction: This page was updated on Dec. 13 to correct the average cost of insurance in Maryland in 2023.