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How much is the average health insurance cost in your state?
The COVID-19 pandemic has made health insurance more important now than ever. Many Americans are more concerned about their healthcare now and the quality of healthcare they have access to.
If you’re planning to move to a new state this year, health insurance costs should be among the top items on your checklists. You wouldn’t want to end up paying more for what you could possibly pay less for.
To help you make the right choice, we’ve collated a list of ten states with the most affordable monthly premiums and the states with the highest monthly premiums.
Health Insurance costs in various states in the US in 2023
According to ValuePenguin, the average annual cost of health insurance in the U.S. is $403. These are the 10 states with the least insurance monthly premiums in 2020, according to How Much:
10 states with the LOWEST monthly health insurance premiums
If you’re moving to any of these listed ten states, you’ll be paying some of the least amounts in healthcare insurance in 2020. If you’re wondering what states are residents paying the highest monthly premiums across the country, we’ve listed them below.
| S.N | State | Population | Monthly Healthcare Premiums |
| 1. | Hawaii | 1.416 million | $411 |
| 2. | Idaho | 1.787 million | $415 |
| 3. | Utah | 3.206 million | $423 |
| 4. | Arkansas | 3.018 million | $431 |
| 5. | Mississippi | 2.976 million | $432 |
| 6. | Tennessee | 6.829 million | $435 |
| 7. | Kentucky | 4.468 million | $437 |
| 8. | Alabama | 4.903 million | $439 |
| 9. | Nevada | 3.08 million | $445 |
| 10. | Oklahoma | 3.957 million | $445 |
10 states with the HIGHEST monthly health insurance premiums
If healthcare is a major consideration for your move, see the list of the top ten states with the highest monthly premium in the U.S.
| S.N | State | Population | Monthly Healthcare Premiums |
| 1. | Alaska | 731,545 | $780 |
| 2. | Wyoming | 578,759 | $662 |
| 3. | New York | 19.45 million | $624 |
| 4. | Vermont | 623,989 | $607 |
| 5. | New Jersey | 8.882 million | $591 |
| 6. | Louisiana | 4.649 million | $578 |
| 7. | Rhode Island | 1.059 million | $564 |
| 8. | West Virginia | 1.792 million | $561 |
| 9. | Illinois | 12.67 million | $559 |
| 10. | Maine | 1.344 million | $556 |
10 states with the LOWEST annual deductibles
Moving to any of these states means you’ll be paying some of the lowest annual deductibles in the United States.
| S.N | State | Population | Annual Deductibles |
| 1. | Pennsylvania | 12.8 million | $1,733 |
| 2. | Oklahoma | 3.957 million | $1,863 |
| 3. | New Jersey | 8.882 million | $2,075 |
| 4. | Massachusetts | 6.893 million | $2,125 |
| 5. | New York | 19.45 million | $2,175 |
| 6. | Vermont | 623,989 | $2,225 |
| 7. | Hawaii | 1.416 million | $2,750 |
| 8. | Oregon | 4.218 million | $2,813 |
| 9. | Louisiana | 4.649 million | $2,925 |
| 10. | Utah | 3.206 million | $2,950 |
10 states with the HIGHEST annual deductibles
Florida tops the top ten list of states with the highest annual deductibles in 2021. See the complete top ten list before making up your mind to move.
| S.N | State | Population | Annual Deductibles |
| 1. | Florida | 21.48 million | $6,913 |
| 2. | Indiana | 6.732 million | $6,763 |
| 3. | Ohio | 11.69 million | $6,625 |
| 4. | Georgia | 10.62 million | $6,188 |
| 5. | New Hampshire | 1.36 million | $6,163 |
| 6. | Washington | 7.615 million | $5,763 |
| 7. | Arizona | 7.279 million | $5,625 |
| 8. | South Carolina | 5.149 million | $5,613 |
| 9. | Nevada | 3.08 million | $5,513 |
| 10. | North Carolina | 10.49 million | $5,500 |
How do insurance companies determine health premiums?
According to HealthCare.Gov, insurance companies set health premiums based on five key factors. These are:
- 1. Location
- 2. Age
- 3. Tobacco use
- 4. Plan category
- 5. If the plan covers dependents
Unlike what many people assume, factors such as gender, health, and medical history doesn’t determine your premium.
Key things to consider when buying health insurance
These are the major things you’ll have to mull over before choosing any health insurance policy:
1. Premium
This is the entire amount of the health insurance plan you’re required to pay either in full or monthly. The eventual amount you’ll end up paying depends on the various benefits included in the plan. To maintain a low premium, there are several key factors you can control and this includes coinsurance costs, deductible, and copay. It is noteworthy to mention that deductible isn’t the same as premiums.
2. Deductible
Deductible refers to the agreed amount that a policyholder is required to pay before the insurance company will pay for whatever services are left. It is the overall amount which you as the policyholder is required to pay for any medical services you get while your coverage lasts. Whatever medical cost is left after this amount is paid by the health insurance company as indicated in the policy.
3. Copay
Copay is the expenses the policyholder is responsible for on top of the premium whenever they visit a doctor or any other health specialist. Copay is also applicable to prescription drugs purchases, urgent care visits, and Emergency Room visits.
Copay costs typically depend on the amount of money you pay for health insurance monthly. Generally, the higher the premium, the lower the Copay. In contrast, lower premiums often attract higher copays. In essence, if you require constant doctor appointments or regular prescriptions, a lower copay plan should be your best option.
4. Coinsurance
Coinsurance refers to the percentage of a medical bill that a policyholder is responsible for after the insurance company has paid their part. Whatever amount the insurance company pays depends on your benefits. Also, the payment is made after you’ve met your deductible. Coinsurance is paid in addition to Copay.
5. Provider network
It’s important to find out if your providers and hospitals are covered before choosing any health insurance policy. Some of the available short-term health insurance plans are without networks. This means insurance will only pay a certain amount depending on the medical services received at almost all providers. In this situation, your best bet is to ask your insurance company about what they cover and then find out from your provider if the insurance company’s payment is in line with their payment structure.
6. Preventive health check-up facility
The cost of some of the most important preventive health check-ups such as MTIs, cardiovascular disease, and cancer screening have escalated. However, when your insurance policy covers all that and your health insurance company pays, then you’ll have less health care cost to worry about. It’s a good opportunity to save a significant amount on your healthcare costs. So, just before you buy any health insurance plan, make sure it covers preventive health check-ups.
7. Claim process
Choose a health insurance service provider with a seamless settlement option. If the claim process of any health insurance company is too complex, you or anyone else on the plan may suffer severe loss while trying to settle claims. This may even involve loss of life depending on the ailment you’re dealing with.
Different types of Health Insurance plans available on the marketplace
Depending on the number of plans available in your area, you may be able to choose from various options at each metal level. These include Platinum, Gold, Silver, and Bronze. Here are the key types of plans you’ll find in the marketplace:
Exclusive Provider Organization (EPO)
This health insurance option offers policyholders a network of participating providers to opt for. Typically, most EPO plans do not include coverage for out-of-network care unless in the event of an emergency. In essence, if you receive any medical service or visit any facility or provider outside your EPO’s local network, you will most likely be responsible for the full cost of such service.
Based on the plan, you may or not be required to opt for a primary care provider (PCP). However, if you intend to see a specialist in your network, you’re not required to do so with a referral from a PCP.
Health Maintenance Organizations (HMO)
With HMOs you’ll have access to a local network of assigned doctors, other health care experts and facilities that you’re asked to choose from. HMOs also allows you to choose a Primary Care Provider (PCP) from the network. Under the HMO plan, policyholders’ PCP is their home base for medical care.
As expected, the PCP gets to know you and help you manage all your care. Furthermore, they will make sure you have access to a referral to see in-network specialists. One of the biggest benefits of the HMO plan is that the cost, coinsurance, and copays are usually less than other types of health plans as long as the policy holders stay in-network.
Preferred Provider Organizations (PPOs)
Generally, PPOs provide a large network of partaking providers giving you the option to choose from lots of hospitals, doctors, and other health care specialists and facilities. You also have the option of seeing providers from outside of the plan’s network. However, this requires paying more out of pocket. The PPO doesn’t require choosing a primary care provider and seeing a specialist doesn’t require a referral.
Point of Service Plan (POS)
The Point of Service plans are a combination of HMO and PPO plans. The provider network is usually smaller than a PPO plan and the price for in-network care is usually less just like an HMO. Also, POS plans policy holders are required to pick a primary care provider (PCP) from the plan’s network of doctors and other primary care specialists. Under this plan, your PCP is your home base for care and advice. They get to know your health needs and can help you manage your health care.
If you have to see a specialist for any reason, you’re required to get a referral under the POS plan. Nonetheless, similar to a PPO, you may decide to see specialists that are in-network or out-of-network. But if you choose to see a doctor outside the plan’s network, your percentage of the cost will be higher and you’ll have to file any claim involved all by yourself.
Different levels of coverage offered under various plans
According to Healthcare.Gov, the various marketplace plans are available in 4 metal categories. These are gold, silver, bronze and platinum. The fifth is the catastrophic plan and it’s available to some people.
- Platinum: It covers 90% of average of your medical costs, while you pay 10%
- Gold: It covers 80% on average of your medical costs. You’re responsible for 20%
- Silver: It covers 70% of your average medical costs. You’re responsible for 30%
- Bronze: it covers 60% of your average medical cost. You’re responsible for 40 %
- Catastrophic: this policy pays after you have been responsible for a very high deductible (about $8,150 in 2020). However, catastrophic plans cover the first three primary care visits and preventive care for free, even if policyholders are yet to meet their deductible.
How premiums are determined
Based on the health care law, insurance companies are only allowed to consider the following key things when determining health premiums:
1. Age
Premiums for older people may be up to three times higher than for younger people.
2. Location
When you’re living has a significant impact on your premium. Variances in state and local rules, competition, as well as cost of living are considered in setting your premium.
3. Tobacco use
Insurance companies are known for being able to charge tobacco users about 50% more than non-users.
4. Family enrollment vs. individual
If you’re requesting for a plan that covers a spouse and/or dependent, insurance companies are more likely to charge more.
5. Plan category
Insurance premiums are available in five different categories. These include Bronze, Silver, Gold, Platinum, and Catastrophic. These categories depend on how you and the plan share cost. For example, Bronze plans typically have lower monthly premiums but higher out-of-pocket costs.
Nonetheless, states have the right to how these various factors determine premiums.
Having read all this, when it’s time to move, make sure you take into consideration the cost of health insurance before deciding where to move.
If you want to see how much it’ll cost to move to any of the above states, use our free Moving Cost Calculator to figure out your moving costs and get free Moving Company Quotes from professional moving companies near you.
