In 2021, Americans Will Spend An Average of $5,952/Year for Health Insurance.

Rhea-AI Summary

In 2021, U.S. health insurance costs average $496 per month, totaling $5,952 annually, marking a 1.59% drop from 2020. However, variances exist across states, with West Virginia having the highest premiums at $712/month, 43.14% above the national average. Notably, New Jersey saw a 9% increase due to a new state-run marketplace, while Pennsylvania's costs decreased by 8%. HMO and POS plans exhibited the largest premium drops, approaching 10.67% and 9.04% respectively. Analysts warn that overall costs may rise slightly due to anticipated claims from delayed procedures during the COVID-19 pandemic.

Positive

• 1. Average monthly health insurance premium decreased by 1.59% from 2020, indicating a marginally improving trend in costs overall.
• 2. States like Iowa, Maryland, and Maine experienced significant year-over-year decreases in health insurance costs, at 20%, 17%, and 15% respectively.

Negative

• 1. Most Americans are expected to see slight premium increases due to COVID-19 factors, including anticipated surges in medical claims.
• 2. New Jersey and Indiana experienced the largest increases in health insurance costs at 9% and 10% respectively, impacting affordability.

NEW YORK, Nov. 19, 2020 /PRNewswire/ -- With Open Enrollment underway, a new ValuePenguin.com analysis has found that in 2021, Americans will spend an average of $496 per month, or $5,952 per year on health insurance, if they purchase a Health Insurance Marketplace plan. There was a slight 1.59% decrease in premiums from the 2020 plan year, but analysts found significant variations across states, and health insurance plan type:

• West Virginia, New York, Wyoming, Vermont and Louisiana residents pay the highest health insurance premiums in the country — premiums here are 43.14%, 41%, 34.73%, 30.50% and 26.45% above the national average.
• New Hampshire, Maryland, New Mexico, Minnesota and Washington residents pay the lowest health insurance premiums in the country — premiums here are 32.55%, 30.19%, 29.68%, 27.26% and 20.66% below the national average.
• Indiana, New Jersey and Delaware had the largest increase in health insurance costs year over year — 10%, 9% and 8% respectively ($42, $43 and $37).
• Iowa, Maryland and Maine had the largest decrease in health insurance costs year over year — 20%, 17%, and 15% respectively ($110, $69 and $78).
• Notably, New Jersey saw rates increase 9% from 2020, after the introduction of their new state run health insurance marketplace. Pennsylvania, which also introduced a state run health insurance marketplace, saw health insurance costs decrease 8% from 2020.
• The most restrictive health insurance policies - namely HMO (health maintenance organization) and POS (point of service) saw the biggest drop in premiums, compared to other types of plans, falling close to 10.67% and 9.04% compared to 2020. By metal tier, Bronze tier health plans saw the sharpest decrease in premiums, falling 6.86% compared to the 2020 plan year.

According to ValuePenguin.com Health Insurance expert Sterling Price, "Despite decreases in average premiums nationally, most Americans will see their premiums increase slightly for the 2021 plan year, due to COVID-19." He adds, "Insurers are anticipating a surge in medical claims from the many Americans who delayed surgeries or medical procedures in 2020 due to the pandemic, and the COVID-19 Vaccination. These factors have led to some insurers adding a slight bump to premiums for the 2021 plan year."

ValuePenguin.com analysts looked at the thousands of Health Insurance plans available from the Centers for Medicare & Medicaid Services. Using the rates and premiums for each plan, averages were calculated for a variety of variables such as metal tier, family size, county and state. To view the full report, visit: https://www.valuepenguin.com/average-cost-of-health-insurance

How Much Will Health Insurance Cost In Your State in 2021?
Rank	State	Monthly cost	Annual cost	% Change from National average	2021 Average (Monthly)	2020 Average (Monthly)	% change year over year
1	West Virginia	$712	$8,540	43.14%	$712	$666	6.82%
2	New York	$701	$8,413	41.00%	$701	$698	0.43%
3	Wyoming	$670	$8,039	34.73%	$670	$766	-12.54%
4	Vermont	$649	$7,786	30.50%	$649	$631	2.86%
5	Louisiana	$629	$7,545	26.45%	$629	$596	5.42%
6	Nebraska	$615	$7,379	23.68%	$615	$648	-5.17%
7	Massachusetts	$599	$7,184	20.41%	$599	$568	5.45%
8	California	$588	$7,056	18.27%	$588	$576	2.03%
9	Alaska	$572	$6,869	15.13%	$572	$614	-6.70%
10	Nevada	$566	$6,792	13.84%	$566	$556	1.85%
11	South Dakota	$561	$6,730	12.79%	$561	$556	0.91%
12	Missouri	$548	$6,572	10.15%	$548	$578	-5.21%
13	New Jersey	$543	$6,521	9.29%	$543	$501	8.54%
14	Oklahoma	$539	$6,464	8.34%	$539	$588	-8.32%
15	Florida	$528	$6,336	6.19%	$528	$554	-4.75%
16	North Carolina	$521	$6,247	4.70%	$521	$490	6.19%
17	Illinois	$517	$6,203	3.97%	$517	$537	-3.70%
18	Alabama	$514	$6,163	3.29%	$514	$488	5.21%
19	Delaware	$513	$6,154	3.14%	$513	$475	7.88%
20	Kansas	$511	$6,138	2.87%	$511	$517	-1.06%
21	Tennessee	$495	$5,937	-0.50%	$495	$491	0.73%
22	Texas	$492	$5,900	-1.12%	$492	$508	-3.18%
23	Arizona	$490	$5,877	-1.50%	$490	$487	0.66%
24	Georgia	$489	$5,874	-1.56%	$489	$490	-0.16%
25	Mississippi	$485	$5,821	-2.43%	$485	$500	-2.98%
26	Utah	$477	$5,730	-3.97%	$477	$493	-3.22%
27	Idaho	$477	$5,723	-4.08%	$477	$485	-1.76%
28	Kentucky	$470	$5,641	-5.46%	$470	$455	3.30%
29	Oregon	$467	$5,603	-6.09%	$467	$441	5.81%
30	South Carolina	$462	$5,550	-6.98%	$462	$501	-7.67%
31	Indiana	$462	$5,543	-7.10%	$462	$420	9.92%
32	Wisconsin	$461	$5,527	-7.37%	$461	$486	-5.16%
33	Iowa	$451	$5,411	-9.32%	$451	$561	-19.56%
34	Montana	$449	$5,393	-9.62%	$449	$448	0.32%
35	Pennsylvania	$449	$5,218	-9.69%	$449	$471	5.00%
36	Hawaii	$446	$5,353	-10.27%	$446	$456	-2.09%
37	Virginia	$443	$5,318	-10.87%	$443	$466	-4.93%
38	Ohio	$435	$5,223	-12.46%	$435	$456	-4.56%
39	Maine	$431	$5,172	-13.32%	$431	$509	-15.32%
40	Arkansas	$426	$5,112	-14.33%	$426	$405	5.18%
41	Rhode Island	$417	$4,999	-16.22%	$417	$387	7.64%
42	North Dakota	$410	$4,923	-17.49%	$410	$387	6.13%
43	Michigan	$402	$4,828	-19.08%	$402	$417	-3.49%
44	Washington	$394	$4,734	-20.66%	$394	$409	-3.50%
45	Minnesota	$362	$4,340	-27.26%	$362	$362	-0.20%
46	New Mexico	$350	$4,196	-29.68%	$350	$364	-3.89%
47	Maryland	$344	$4,122	-30.91%	$344	$413	-16.75%
48	New Hampshire	$335	$4,024	-32.55%	$335	$383	-12.38%

About ValuePenguin.com: ValuePenguin.com, part of LendingTree (NASDAQ: TREE), is a personal finance website that conducts in-depth research and provides objective analysis to help guide consumers to the best financial decisions. ValuePenguin focuses on value, assessing whether the return of a particular decision is worth the cost or risk of that option, and how this stacks up with the other possible choices they may have. For more information, please visit www.valuepenguin.com, like our Facebook page or follow us on Twitter @ValuePenguin.

Additional Information: https://www.valuepenguin.com/health-insurance 

Media Contact:
Divya Sangam (Ms.)
646 693 8445
Divya@lendingtreenews.com

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SOURCE ValuePenguin.com

FAQ

What is the average health insurance cost in the U.S. for 2021?

The average monthly health insurance cost is $496, equating to $5,952 annually.

Which states have the highest health insurance premiums in 2021?

West Virginia, New York, Wyoming, Vermont, and Louisiana have the highest premiums, with West Virginia at $712/month.

How much did health insurance premiums change from 2020 to 2021?

Health insurance premiums saw an average decrease of 1.59% from 2020.

What state saw a significant increase in health insurance costs?

New Jersey had a notable 9% increase in health insurance costs due to a new state-run marketplace.

Which health insurance plans had the biggest drop in premiums?

HMO and POS plans had the largest decreases in premiums at approximately 10.67% and 9.04% respectively.