Protecting your family’s health is important, but so is protecting your wallet from unexpected health care costs. Family health insurance keeps both your family and your finances healthy.
If a member of your family has a medical emergency and is not covered, you could end up paying hospital bills and various related costs out of pocket, which could have the potential to break anyone’s bank.
average cost of family health insurance per month
An insurance premium is the monthly payment you make to stay enrolled with your insurance company. In 2020, the average monthly cost of family health insurance was $1,152, according to our recent study. Keep in mind that this number is an average, and your premium can vary widely based on your family size, location, and level of coverage.
Authorized ehealth brokers can help you find the plan that fits your budget, while providing the coverage your family needs to protect their health. In addition, all this service comes at no additional cost. With licensed agents in every state and 24/7 support, you can be sure we’ll help you find and manage the best insurance plan for you. Check out all the individual and family health insurance plans available in your area and use our free comparison tools to weigh your options.
average annual cost of family health insurance
Another family health insurance cost you can expect to pay is deductibles. A deductible is the amount of money you pay out-of-pocket for health care before your health insurance picks up the payment. Once you’ve reached this amount, your insurance will generally pay for the rest of the covered care you receive for the rest of the year.
Unlike individual plans, you can have two deductibles with family health insurance: an individual deductible and a family deductible. This isn’t true for all plans, so be sure to check your plan details before you buy and find out how deductibles work for your chosen plan. you must meet the individual or family deductible before your health insurance kicks in and begins paying for care.
According to the recent ehealth study, family health insurance plans had an average annual deductible of about $8,439 in 2020.
additional costs of family health insurance
In addition to your premium and deductible, you can expect other costs with family health insurance, including:
- Copayment – A copayment is a fixed amount you pay for a covered service. a copay may take effect before or after you’ve met your deductible.
- Coinsurance: Coinsurance is a percentage you pay for a covered service after you meet your deductible. you can expect to pay coinsurance until you’ve reached your out-of-pocket maximum.
- Out-of-pocket maximums: The out-of-pocket maximums are limits on the amount of money you have to pay for coverage. Once you’ve reached your out-of-pocket limit, your insurance will pay 100% of the cost of your covered benefits for the rest of the coverage year.
- aca subsidies: the patient protection and affordable care act (aca), commonly known as obamacare, offers tax credits for those who earn a certain percentage of the federal poverty line (fpl) and otherwise they would have difficulty paying for medical care . In general, the lower your income and the larger your family, you’ll get higher subsidies.
- Chip: The Children’s Health Insurance Program (CHIP) is a federal-state effort to provide affordable or, in some cases, free health insurance for families with children. In general, if you have children and make too much money to qualify for Medicaid, but your income is below 200% of the poverty level, you will qualify for the chip.
- Other Options: If you have at least a family of four and an income of less than $99,000 per year, you should qualify for some state or federal assistance, as there are other state programs specifically for families struggling to pay for health care . Short-term health insurance plans are also a good option if you need to fill in gaps in coverage quickly. short-term health insurance won’t give you the same coverage as most major medical plans, but they’re good if you and your family find yourself without coverage.
Do I qualify for government assistance?
Depending on your annual household income, you may qualify for government assistance to pay for coverage for you and your family. options may include:
what to consider when buying family health insurance
Family health insurance costs can vary significantly, depending on your circumstances and preferences. While there is no tax penalty for not having health insurance in 2020, it’s still important to have your family covered to protect yourself from unexpected health care costs that can be substantial in some situations.
To find the right family coverage for your family and your budget, take a look at eHealth’s family health insurance options by state. ehealth can help you navigate all these cost variables and find an affordable plan for you and your family.