Les Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Written By Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Deputy Editor, Insurance Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
| Lead Editor, Insurance
Updated: Jul 17, 2024, 4:00pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
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Obamacare, officially known as the Affordable Care Act (ACA), created the health insurance marketplace, which lets you compare available plans in your area.
Obamacare plans can play a vital role in helping Americans get the best health insurance when they aren’t eligible for coverage through an employer. But ACA plans can be pricey if you don’t qualify for subsidies or premium tax credits.
The average Obamacare plan costs $509 per month for a 40-year-old individual, based on our analysis. The exact cost depends on your age, your location, type of plan and metal tier level and other factors.
Those costs don’t account for premium tax credits that can reduce Affordable Care Act plan costs if your household income qualifies. You can compare ACA plans at HealthCare.gov.
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Source: HealthCare.gov. Based on unsubsidized ACA plans.
Note: Platinum plans aren’t usually offered and there is not enough cost data on Platinum plans to offer an accurate picture of costs.
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Obamacare costs are based on multiple factors—but, importantly, not your health.
What Is 400% of the Federal Poverty Level?
One person Two people Three people Four people Five people Source: U.S. Department of Health and Human Services See More See Less
Insurance Managing Editor
Insurance Lead Editor
Insurance Lead Editor
More than 14 million Americans with ACA plans receive advanced premium tax credits based on their income. The average monthly savings is $527, according to the Kaiser Family Foundation. Those eligible for tax credits have a household income of 400% of the federal poverty level or below. I’ve found that the ACA marketplace makes it easy to figure out if you qualify. You enter your household income information into the ACA marketplace website at HealthCare.gov and it shows how much you may save for each type of plan in your area.
HMOs and EPOs are generally cheaper than a PPO or POS plan. PPO and POS plans offer more flexibility, such as allowing out-of-network care, but that typically comes at a higher cost. Our analysis of ACA marketplace costs found that a 40-year-old can save nearly $100 on average monthly by choosing an HMO rather than a PPO.
Insurance Managing Editor
A high-deductible health plan (HDHP) is one way to save on premiums. HDHPs typically have cheaper health insurance premiums, but higher deductibles mean you may pay more for healthcare services during the year. An HDHP is a plan with a health insurance deductible of at least $1,600 for single coverage and $3,200 for family coverage. I’ve found that bronze and silver plans are generally HDHPs.
Insurance Lead Editor
I recommend health savings accounts (HSAs) as a way to help you save money tax-free for future healthcare costs. HSAs are paired with an HDHP. You own the HSA, and it lets you carry over any money into the next year.
Catastrophic health insurance is an ACA marketplace option only for people under 30 or those facing severe economic issues, such as homelessness. I’ve found that these plans offer many of the same protections found in Obamacare plans. Catastrophic health plans have low premiums, but unlike Obamacare plans, they don’t qualify for advanced premium tax credits or subsidies.
Insurance Lead Editor
Obamacare plans are divided by costs into four metal tiers: bronze, silver, gold and platinum health plans.
Bronze and silver plans have cheaper premiums but more out-of-pocket expenses, while gold and platinum plans have higher premiums but fewer out-of-pocket costs like deductibles and coinsurance when you need care.
Here’s the difference between the plans by how much of the medical bills you have to pay when you get care.
When choosing a metal tier, consider your current healthcare needs and what’s expected in the coming year. A bronze or silver plan may make sense if you’re healthy and don’t expect to need many healthcare services over the next year. A gold or platinum plan may be better if you need surgery in the next year, expect to have a child, regularly see a doctor or are on multiple prescription drugs.
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Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before covering insurance, Les was a news editor and reporter for Patch and Community Newspaper Company and also covered health care, mortgages, credit cards and personal loans for multiple websites.
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