How Much Does Health Insurance Cost? - Compass Insurance Advisors
  • How Much Does Health Insurance Cost?

    How much does individual health insurance cost? The answer to that is dependent on many factors. One way to get a benchmark idea of how much you’ll pay for health insurance is by looking at the federal poverty level.

    If you are paying for health insurance as an individual, how much you’ll spend on health insurance will be determined by your annual income. How far above the federal poverty line your income is will determine what percentage of your income you will pay towards health insurance.

    What is the Federal Poverty Level?

    The federal poverty level (FPL) is established by the federal government and measures poverty in the United States. The level of poverty is determined by the minimum gross income a family needs for food, shelter, clothing, transportation, and other basic needs. The FPL was established to determine an individual or family’s eligibility for assistance programs.

    For the health insurance marketplace, this assistance is called a subsidy. 9 out of 10 people qualify for some assistance on the health insurance marketplace, making health insurance more affordable than most people realize.

    If an individual qualifies for a subsidy, then they will receive assistance to pay for their monthly premium on health insurance. The chart below shows the percentage of the federal poverty level (FPL) along with the percentage of the household income that is paid for a silver health insurance plan. We will also include an FPL calculator to get an FPL estimated percentage of your income. If a family opts for a bronze plan over a silver plan, they will pay much less than the percentages below.

    % of FPLWhat % of household income is paid for the benchmark silver plan 
    100-1330%
    133-1350%
    150-2000% – 2.0%
    200-2502.0% – 4.0%
    250-3004.0% – 6.0%
    300-4006.0% – 8.5%
    400+8.5%

    What incomes qualify for savings? 

    Here at Compass Insurance Advisors, we have seen that 8 or 9 people out of 10 will qualify for some assistance. More people than ever qualify for health insurance due to the American Rescue Plan Act that President Biden passed in March 2021. Before the American Rescue Plan Act (ARPA) went into effect, people stopped receiving subsidies at 400% of the FPL. However, with the current legislation, instead of receiving subsidies at a fixed income amount, individuals will now not pay more than 8.5% of their income for health insurance. If someone chooses a bronze plan, then their monthly premiums will be even lower than 8.5% of their income. This chart shows the income that falls at 100% and at 400% of the FPL.

    Household size100% of Federal Poverty level (2021)400% of Federal Poverty level (2021)
    1$12,880$51,520
    2$17,420$69,680
    3$21,960$87,840
    4$26,500$106,000
    5$31,040$124,160
    6$35,580$142,320
    7$40,120$160,480
    8$44,660$178,640

    How Much Does Health Insurance Cost?

    Here is an example of how much health insurance may cost for an individual. If a single person earns $32,000 for the year, their FPL is 235%. According to the chart above, this means that their cost for a silver plan will be 2-4% of their income. That would result in a monthly payment of $53-$106. If the person chooses a bronze plan, they could pay significantly less than this.

    How Do I Qualify For Savings?

    Talk to your insurance agent if you have questions about whether your income qualifies for subsidies. Because of the constant changes that occur in the insurance world, we encourage everyone to work with an agent to receive professional guidance when purchasing health insurance. Our insurance agents keep you up to date about all the changes happening now and in the future.

    Now that you have been informed about the federal poverty level, it is also important to know that the ARPA bill might be temporary and will be effective up to the end of 2022, and therefore the subsidy is subject to change.

    We understand that enrolling in health care insurance sounds tedious but with the help of your agent, the process should be easy and all taken care of for you. Call Compass Insurance Advisors, to get free advice about your insurance needs, (801) 901-3519.

  • Leave a Reply

    Your email address will not be published. Required fields are marked *


Need Help?

Speak To A Certified Compass Agent Today!

(801)901-3519

Monday - Friday 8:00 am - 9:00 PM


Or Find Affordable Insurance Plans

Related Articles

Dynamic Blog Short Description

  • A Complete Guide to Health Savings Accounts

    A Complete Guide to Health Savings Accounts

    Introduction Are you tired of paying high premiums and medical bills while not fully understanding your insurance policy? Well, I'm here to tell you about some options that could save money on your medical expenses and premium while also getting tax benefits. Keep reading to learn more! What

    Read More
  • The Medicaid Unwinding Explained

    The Medicaid Unwinding Explained

    https://youtu.be/1TJUu7Gyk_U The Medicaid Unwinding Explained! What is the Medicaid Unwinding? At the start of the COVID-19 pandemic, Congress enacted the Families First Coronavirus Response Act (FFCRA). This ensured that people would have access to continuous health coverage through Med

    Read More
  • Medicare Part D

    Medicare Part D

    Drug Coverage: What is Medicare Part D? Medicare drug coverage helps pay for prescription drugs. If you don’t currently require any prescriptions, there are still reasons to consider getting Medicare drug coverage.         Medicare drug coverage (Part D) is optional and is offered t

    Read More
  • How Much Does Health Insurance Cost?

    How Much Does Health Insurance Cost?

    How Much Does Health Insurance Cost? How much does individual health insurance cost? The answer to that is dependent on many factors. One way to get a benchmark idea of how much you'll pay for health insurance is by looking at the federal poverty level.If you are paying for health insurance as a

    Read More
  • How to Apply for Medicaid

    How to Apply for Medicaid

    What is Medicaid in Utah? Medicaid is a program that is funded by both the state and the federal government. The Utah Department of Health administers Medicaid but the Department of Workforce Services (DWS) determines someone’s qualification. Medicaid helps people with low income receive healt

    Read More
  • Health Coverage for Immigrants

    Health Coverage for Immigrants

    What options are available to immigrants? Many people who are not born in the United States often wonder if they can get health insurance and if they do, could they also qualify for government assistance? In this article, you will learn what kind of status qualifies for health insurance through

    Read More
  • The American Rescue Plan Act’s Effect on Health Insurance

    The American Rescue Plan Act’s Effect on Health Insurance

    Due to the impact of Covid-19, President Biden passed the American Rescue Plan Act (ARPA) on March 11, 2021. One of the proponents of ARPA was to lower monthly health insurance premiums. This was done by increasing the eligibility for health insurance subsidies. Before ARPA was passed, fewer peo

    Read More
  • Health Insurance for Pre Existing Conditions

    Health Insurance for Pre Existing Conditions

    What types of health insurance policies will cover preexisting conditions? In this article, we are going to walk you through what you need to know if you or anyone you know needs coverage due to a pre-existing condition. We will inform you of which insurance plans cover and which ones do not cover

    Read More
  • Who is eligible for the Health Insurance Marketplace?

    Who is eligible for the Health Insurance Marketplace?

    In 2010, the Health Insurance Marketplace was created by the Affordable Care Act (ACA) also known as Obamacare. Any United States citizen is eligible to apply for health insurance through the Marketplace, and many people will qualify for lowered monthly payments through an advance tax credit. If yo

    Read More

What Others Say About Us

Our Customers Love Us

Let Us Help You Find A Health Insurance Plan

No Extra Cost. Professional Guidance. Quick Analysis. Complete Protection. Simplified Enrollment. Personalized. Support.