Health insurance premiums have risen dramatically over the past decade in response to the rising cost of health care services. The Affordable Care Act (aka Obamacare) helped to make health insurance accessible and affordable to more Americans by creating health insurance marketplaces or “exchanges” and by providing government subsidies to lower income Americans.

Until 2021, many Americans found the subsidies did not apply to them, or they did not realize they qualified for government assistance for their healthcare coverage. The affordability problem continued, with a large number of people still living without insurance. However, that changed in March 2021, with the introduction of the American Rescue Plan Act.

What are subsidies for Obamacare health insurance?

ACA subsidies are tax credits available to many people whose net income is between 100% and 400% of the Federal Poverty Level (FPL). ACA subsidies go toward paying health insurance premiums for those who might otherwise not be able to afford health insurance.

Do you qualify for a subsidy under the American Rescue Plan Act?

The American Rescue Plan Act (ARPA) continues to significantly impact subsidies for health insurance in 2024. The original provisions under ARPA have been extended through the Inflation Reduction Act, continuing the adjustment to premium subsidies beyond the previous limits of the Affordable Care Act (ACA).

Before ARPA, premium subsidies were not available to individuals and households earning more than 400% of the federal poverty level (FPL), known as the “subsidy cliff.” However, ARPA removed this cliff by ensuring that no one pays more than 8.5% of their income towards health insurance premiums for a benchmark silver plan, regardless of their income above 400% FPL. This cap on premiums significantly expanded eligibility for financial assistance, making subsidies available to a broader range of incomes.

Moreover, individuals and families earning between 100% and 150% of the FPL can now access zero-premium silver plans, with reduced cost-sharing, effectively offering enhanced coverage that resembles platinum-level plans for lower-income brackets. These changes have notably decreased premiums for many, with an estimated average monthly savings of $70 per individual, and up to $213 for those with incomes between 400% and 600% of FPL. This has made health insurance more affordable and accessible for millions more Americans, including those who previously might have found premiums prohibitively expensive.

For those currently enrolled in the Marketplace or those who lost their jobs and received unemployment benefits in 2021, additional savings and lower out-of-pocket costs are available through increased tax credits. These changes have been implemented to ensure that more Americans can afford comprehensive health coverage during the ongoing economic challenges posed by the pandemic​​​​​​​​​​.

If you need more detailed information or want to check how these changes might specifically affect you, visiting HealthCare.gov or contacting their support can provide personalized assistance and information.

If you are one of the millions that now qualifies for a subsidy or can receive more assistance under the ARPA, eHealth is ready to help you find a plan that meets your needs and budget. Our licensed brokers are ready to work with you to purchase insurance in any state, with 24/7 support and the ability to sign up for a plan online, through our chat, or by phone.

What is unsubsidized health insurance?

Unsubsidized health insurance is any type of health coverage that the policyholder is responsible for paying the entire cost of the insurance plan. This means the individual pays the full premium cost and the full cost-share attributed to the policyholder according to the plan benefits. These out-of-pocket expenses include deductibles, copayments, and coinsurance for covered services and all expenses for non-covered services. Neither government assistance in such forms as tax credits and financial help programs nor employer cost-share contribution is available to reduce the individual’s health insurance cost.

What is the average cost of non-subsidized health insurance in 2024?

As of 2024, the average cost for non-subsidized health insurance premiums varies based on the specific plan type and location. For an individual on a Silver plan, which typically offers moderate deductibles and copays, the average lowest-cost monthly Silver premium is approximately $468. However, costs can vary significantly depending on the state; for example, in Washington, D.C., the average monthly premium for a Silver plan is about $538​​​​.

For families, the costs are considerably higher. An average family of four buying non-subsidized health insurance can expect to pay around $27,025 annually, which breaks down to an average premium of approximately $23,968 and about $3,057 in deductible expenses​​.

What do you pay if you do not qualify for subsidies in 2024? The average monthly non-subsidized health insurance premium for one person on a benchmark plan (i.e., “Silver” plan) was $477 per month in 2024. Monthly premiums for ACA Marketplace plans vary by state and can be reduced by subsidies. Actual cost varies based on your age, location, and health plan selection.

What is the average cost of health insurance for a families?

Consumers buying for a family pay an average premium of $23,968 ($8,435 for singles) for health insurance in 2023.

Plan selection can affect monthly premiums. Usually the more coverage the plan offers, the higher your monthly premium. These average premiums each increased 7% in 2023.

“Metallic” Plans	Average Lowest-Cost Premium in 2023	Average Lowest-Cost Premium in 2024
Platinum	$472	$488
Gold	$456	$477
Silver	$448	$468
Bronze	$342	$364

But monthly premiums are only part of the cost of health insurance. Consider also the cost of annual deductibles, the out-of-pocket costs you pay before your health plan pays for most covered services. The average family plan deductible for 2022 (across all family sizes) was $3,811 ($1,992 for singles).

The bottom line for non-subsidized health insurance for a family

If you are buying an ACA plan as health insurance for a family, you can expect to pay about $27,025 for the year in premiums and deductibles. That breaks down to an average of $23,968 in annual premium cost for health insurance for families and $3,057 in deductible expenses.

eHealth recognizes the rising cost of health care is alarming to most families. But don’t be discouraged at the prospect of finding family health insurance you can afford. We are here to help you find the best level of coverage for you and your family at the most reasonable price. Additionally, you can use our subsidy calculator to help you determine whether you may be eligible for a tax subsidy. With eHealth:

• You can compare your individual or family health insurance options using our user-friendly online services 24/7 and chat with an eHealth representative anytime you have a question.
• You can talk with an eHealth licensed insurance agent who knows how to help you get affordable health coverage that meets the needs of you and your family.

Explore your individual and family health insurance options today. It costs you nothing to take advantage of eHealth services.

This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.