Did you know that 28 million Americans went without health insurance for the entire 2020 calendar year?
Why do people go without health insurance? Because they think it’s too expensive or they can’t afford it. Assuming you can’t afford health insurance and going without is a gamble, and it’s not worth taking.
Without health insurance, an illness or injury could cost you a lot more than a monthly premium.
So, how much does health insurance cost? Read on to learn all about the types of health insurance you can buy and how they’ll impact your budget.
Health Insurance Cost Factors
If you’re looking for cheap health insurance, you must understand that health insurance prices aren’t static. There are several factors contributing to the cost of your premiums, deductibles, and co-pays. These factors include:
- Federal and state regulations
- State and county factors
- Income
- Employer company size
- Plan details
- Age and tobacco use
It’s also true that the health insurance offered by your employer may not be the most cost-effective. Health insurance plans purchased through the Affordable Care Act (ACA) are an option. Look here for more health insurance options.
Employer-Sponsored Health Plan
America’s healthcare system is employer-based, with over 156 million citizens receiving health insurance through an employer-sponsored health plan. An employer-sponsored health insurance plan is a benefit meant to attract qualified workers, and the splits cost with the employee.
The employer healthcare model started during WWII when business owners needed workers from a depleted labor force. From there, labor unions bargained for health insurance from employers during CBA negotiations.
Rising costs, reduced labor union membership, and a mobile workforce make employer-sponsored health insurance options less attractive.
Affordable Care Act Marketplace
According to 2021 data, 31 million Americans have an Affordable Care Act health insurance plan. Signed into law in 2010, with a 2014 launch, the ACA changed how folks buy health insurance.
While many people still receive their health insurance through an employer, folks don’t need a job for their health care. Health insurance companies cannot deny coverage to people based on pre-existing conditions or other factors.
The ACA is also how to find cheap health insurance. Low-income Americans making between 100-400% of the Federal Poverty Level may receive tax credits and subsidies. These subsidies and tax credits help low-income earners get the preventative care they need.
Unfortunately, the ACA isn’t perfect. Whether they receive health insurance through their employer or the ACA, a recent poll indicated that Americans are not pleased with the health insurance industry. If that’s you, you may be on the search for an alternative.
How Much Does Health Insurance Cost
How much does health insurance cost? Factors including your location and occupation determine the cost. Folks with an employer-based plan may have cheaper premiums and co-pays, but maybe not. ACA plans offer subsidies and tax rebates to help low-income Americans afford health care.
Do you need more healthcare news? Make sure to check out the rest of our page for the latest.