UPDATED: OCTOBER 02, 2023 | 3 MIN READ
If you’re single without employer-sponsored health coverage, you may wonder how much Obamacare plans cost. In this article, we’ll break down the average costs of Obamacare plans for a single person, the factors that affect them, and ways to save on your premiums.
The average cost of Obamacare plans for a single person
Obamacare plans are sold on the Marketplace and come in four metal tiers: bronze, silver, gold, and platinum. The higher the metal tier, the more comprehensive the benefits and the higher the monthly premiums.
Regarding the pricing of Obamacare plans, the following information is paramount regarding the monthly premiums.
- Age
- Location
- Income
- Household size
- Plan type
Monthly cost for individuals
The average monthly cost of a silver plan for a single person in 2021 was $452, but this can vary widely depending on where you live, your age, and your income. For example, a 30-year-old in New York City making $30,000 per year could pay as little as $108 per month after tax credits, while a 60-year-old in Wyoming making the same amount could pay over $700 per month.
Importance of income qualifications for premium tax credits
If you make less than 400% of the federal poverty level (FPL), you may be eligible for premium tax credits to lower your monthly premium. In 2021, the FPL for a single person was $12,880, so someone making $51,520 or less would qualify for tax credits. Your tax credit amount depends on your income, age, and where you live.
Factors affecting Obamacare costs
Several factors can affect how much you pay for an Obamacare plan. As mentioned above, age, location, income, plan type, and household income all affect the costs. Additional key factors to consider are the health insurance company, the benefits schedule, and the metal tier.
Average Obamacare costs for single adults by age
| Health insurance policyholder | Average cost for Obamacare plan |
| Adult 18 | $326 |
| Adult 21 | $365 |
| Adult 27 | $386 |
| Adult 30 | $412 |
| Adult 40 | $469 |
| Adult 50 | $655 |
| Adult 60 | $994 |
Role of health insurance companies in determining costs
Health insurance companies can set their own rates for Obamacare plans, which vary widely depending on the insurer and the state. Factors that insurers consider when setting rates include enrollees’ age and health status, the cost of healthcare in the area, and the amount of competition among insurers.
Average monthly costs for single adults based on popular insurance carriers
| Health Insurance policyholder | UnitedHealthcare | Aetna | Cigna | Kaiser Permanente |
| Adult 18 | $314 | $338 | $339 | $289 |
| Adult 21 | $355 | $371 | $385 | $335 |
| Adult 27 | $372 | $389 | $412 | $351 |
| Adult 30 | $403 | $421 | $443 | $381 |
| Adult 40 | $454 | $474 | $497 | $482 |
| Adult 50 | $634 | $662 | $696 | $599 |
| Adult 60 | $963 | $1,006 | $1,052 | $910 |
Influence of benefit design on costs
The benefits and cost-sharing structures of Obamacare plans can also affect how much you pay for coverage. For example, a plan with a higher deductible may have a lower monthly premium, but you’ll pay more out of pocket for medical expenses before your insurance kicks in. Additionally, some plans may have higher copays or coinsurance for certain services, like prescription drugs or specialist visits.
Average costs for Obamacare plans by plan type for a single person
| Health Insurance policyholder | HMO | EPO | PPO | POS |
| Adult 18 | $309 | $334 | $362 | $386 |
| Adult 21 | $342 | $380 | $404 | $445 |
| Adult 27 | $361 | $405 | $423 | $466 |
| Adult 30 | $390 | $436 | $458 | $505 |
| Adult 40 | $438 | $490 | $516 | $568 |
| Adult 50 | $613 | $685 | $721 | $794 |
| Adult 60 | $930 | $1,037 | $1095 | $1,207 |
Plan tiers
The Obamacare Marketplace categorizes health plans into metal tiers based on premiums and out-of-pocket costs. The metal tiers consist of Bronze, Silver, Gold, and Platinum. Bronze and Silver plans have lower premiums and higher out-of-pocket costs, while Gold and Platinum plans have higher premiums and lower out-of-pocket costs. Most commonly, ACA plans are Bronze and Silver, and Platinum plans are less common among health insurers.
Average Obamacare costs for a single person by metal tier
| Health Insurance policyholder | Bronze | Silver | Gold |
| Adult age 18 | $279 | $365 | $401 |
| Adult age 21 | $313 | $410 | $450 |
| Adult age 27 | $330 | $433 | $476 |
| Adult age 30 | $356 | $468 | $514 |
| Adult age 40 | $401 | $526 | $578 |
| Adult age 50 | $560 | $736 | $808 |
| Adult age 60 | $850 | $1,115 | $1,225 |
Saving on Obamacare plans for a single person
There are ways to save on health insurance costs through the Affordable Care Act (ACA) Marketplace, such as taking advantage of premium tax credits and carefully selecting a plan based on individual needs, by understanding how tax credits and plan types impact savings, individuals can make informed decisions when choosing an Obamacare plan.
Premium tax credits and Medicaid eligibility
As mentioned, premium tax credits can lower your monthly premium if you qualify based on income. Additionally, if your income is below a certain threshold, you may qualify for Medicaid, which provides free or low-cost health coverage.
Subsidies are eligible for households and individuals with an income of 400% of the federal poverty level and below. Those that enroll in Silver-tier plans can also receive subsidies for cost-sharing that reduce their costs when using the plan.
400% federal poverty level
| Family size | 400% of FPL |
| Single adult | $54,360 |
| Two member family | $73,240 |
| Three member family | $92,120 |
| Four member family | $111,000 |
| Five member family | $129,880 |
Choosing an HMO or EPO
Health Maintenance Organizations (HMOs) and Exclusive Provider Organizations (EPOs) are two types of plans that may have lower monthly premiums than other plan types. However, they also typically have more restrictions on which healthcare providers you can see.
Requirements for health insurance companies
The ACA sets multiple requirements for health insurance companies to protect their policyholders. These requirements include:
- Forbidding lifetime monetary caps on coverage
- Setting annual in-network out-of-pocket maximums
- Mandating coverage of at least the ten essential health benefits, including hospitalizations, outpatient care, emergency services, and maternity and newborn care
- Prohibiting health insurers from canceling health insurance unless there’s fraud
- Banning insurance companies from denying coverage based on preexisting conditions
- Demanding that insurers use a minimum percentage of premiums to pay for member medical services
FAQ
How much does Obamacare cost for a single person?
In 2022, the average monthly cost of health insurance for an individual on an Affordable Care Act (ACA) plan, without any subsidies, is estimated to be $438 nationwide. This cost may vary depending on factors such as age, location, and chosen level of coverage.
What is the minimum income to qualify for Obamacare 2023?
Health insurance subsidies are the government’s financial assistance to help individuals and families afford health insurance coverage under the Affordable Care Act (ACA). Eligibility for these subsidies is based on income, household size, and other factors. In 2023, individuals with an income between $13,590 and $54,360 and a family of four with a combined income of $27,750 to $111,000 may qualify for ACA subsidies.
How much is the average lowest cost of an Obamacare plan for a single person?
The average lowest cost for Obamacare plans can vary based on several factors. The US average ranges between $328 and $482 for the lowest average cost by metal tier.
| Average lowest cost | Bronze Plan | Silver Plan | Benchmark Plan | Gold Plan |
| US Average | $328 | $436 | $452 | $482 |
How long is open enrollment for Obamacare?
Open Enrollment for the ACA happens annually from November 1 to January 15. Outside of the Open Enrollment Period, you would need a qualifying situation (Special Enrollment Period) to enroll or change plans.
What is better, an HMO, PPO, or EPO?
Health insurance plans come in various types, including HMOs, EPOs, and PPOs, which differ in flexibility and costs. HMOs are known to have the lowest monthly costs but offer the least flexibility compared to EPOs, which are slightly more expensive. PPOs are the most flexible but are often the most expensive of the three.
Understanding the average cost of Obamacare plans and the factors that affect them can help you make an informed decision when choosing coverage. Additionally, you can find a plan that fits your budget and healthcare needs by exploring ways to save on your premiums.
Methodology
AgileRates extracted and analyzed data from the following to provide data in this article.
- “Average Marketplace Premiums by Metal Tier, 2018-2023” (Kaiser Family Foundation)
- “How to pick a health insurance plan” (Healthcare.gov)
- “Marketplan 2023 Open Enrollment Fact Sheet” (CMS)
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- Understanding Health Insurance Costs For a Single Person
