NCPA - National Center for Policy Analysis

THE COSTS AND BENEFITS OF INDIVIDUAL HEALTH INSURANCE PLANS

November 21, 2005

As the number of uninsured Americans has reached 45.8 million, the importance of knowing how much consumers are willing to pay and the benefits they receive for individual health insurance plans continues to increase. A new eHealthInsurance report outlines the cost and benefits of individual health insurance plans.

According to researchers:

  • Individual policyholders pay, on average, $148 per month for major medical coverage; family policyholders pay an average monthly premium of $331, or $110 per covered member, based on the average of 3.0 members per plan.
  • Among individuals with major medical plans, women pay a higher average monthly premium than men ($160 vs. $135), as well as across each age group; however, within plans sold to families, the average monthly premium is higher for plans whose primary policy holder is a man.
  • The average monthly cost to insure a child on his own is $89.
  • The range of average monthly premiums across the United States falls between $98 for Michigan residents and $379 for New York residents; this represents a monthly disparity of $281, or $3,372 per year.
  • About 60 percent of major medical plans sold to individuals have a deductible of $2,000 or less, while 35 percent have a deductible of $500 or less; among family plans, 50 percent have a deductible of $2,000 or less.

Furthermore, short-term policyholders pay an average monthly premium of $78 for individual coverage and $192 for family coverage, while nearly 74 percent of short-term individual plan holders are under the age of 35, with the largest group (40 percent) between the ages of 25 and 34.

Source: "The Cost and Benefits of Individual Health Insurance Plans," eHealthInsurance, November 9, 2005.

 

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