How Much Does Health Insurance Cost in 2026? Average Premiums

What Does Health Insurance Cost in 2026?

Health insurance is one of the largest recurring expenses most Americans face, yet the actual price varies enormously depending on where you get your coverage, how old you are, where you live, and which plan you choose. A 27-year-old in Ohio could pay under $300 per month for a marketplace Bronze plan, while a 60-year-old family of four in Alaska might face premiums above $3,000 per month before subsidies.

This guide breaks down average health insurance premiums for 2026 across every major coverage type — ACA marketplace, employer-sponsored, COBRA, and short-term plans. We will examine how premiums are calculated, what the expiration of enhanced subsidies means for your wallet, and concrete strategies to lower your monthly cost.

Average Marketplace Premiums by Metal Tier

ACA marketplace plans are organized into four metal tiers — Bronze, Silver, Gold, and Platinum — plus Catastrophic plans for eligible consumers under 30. For a 40-year-old non-tobacco-using individual at the national average, the following monthly premiums represent typical 2026 costs before subsidies:

• Catastrophic: approximately $290 per month. Available only to consumers under 30 or those with a hardship exemption. Very high deductible with three free primary care visits per year.
• Bronze: approximately $420 per month. Covers about 60 percent of average costs. Deductibles typically range from $6,500 to $9,200.
• Silver: approximately $560 per month. Covers about 70 percent of average costs. The benchmark tier for subsidy calculations. Deductibles typically range from $3,500 to $6,000.
• Gold: approximately $665 per month. Covers about 80 percent of average costs. Deductibles typically range from $1,000 to $2,500.
• Platinum: approximately $780 per month where available. Covers about 90 percent of average costs. Often has very low or zero deductibles. Not offered in every state.

These figures are pre-subsidy. After applying premium tax credits, the majority of marketplace enrollees pay significantly less. Nationally, roughly 90 percent of marketplace consumers receive some level of financial assistance.

Average Premiums by Age

Age is the single biggest driver of health insurance premiums on the individual market. The ACA allows insurers to charge older adults up to three times more than younger adults. Below are approximate 2026 monthly premiums for the benchmark Silver plan (second-lowest-cost Silver) before subsidies at the national average:

• Age 21: $370 per month
• Age 27: $395 per month
• Age 30: $415 per month
• Age 40: $475 per month
• Age 50: $670 per month
• Age 60: $1,020 per month
• Age 64: $1,115 per month

A child aged 0 to 14 is charged approximately $265 per month for the benchmark Silver plan. Families only pay individual premiums for up to three children under 21 — any additional children are covered at no extra premium charge. The total household premium is the sum of each covered member's individual rate.

Average Premiums by State

Where you live has a dramatic impact on what you pay. State-level premium differences are driven by local healthcare costs, hospital concentration, insurer competition, state regulations, and the health of the insured population. For a 40-year-old on the lowest-cost Silver plan, 2026 monthly premiums range from under $350 in highly competitive markets to well above $800 in states with limited competition.

Most Affordable States

• New Hampshire: approximately $340 per month for the lowest-cost Silver plan for a 40-year-old.
• Minnesota: approximately $360 per month. Strong insurer competition keeps rates low.
• Michigan: approximately $370 per month. Multiple carriers compete across most counties.

Most Expensive States

• Wyoming: approximately $850 per month. Limited insurer competition and high rural healthcare costs.
• West Virginia: approximately $780 per month. An older, less healthy risk pool drives costs higher.
• Alaska: approximately $810 per month. Extremely high provider costs and geographic isolation.

Remember that subsidies are designed to offset geographic cost differences. A consumer in an expensive state with moderate income may pay less after subsidies than an unsubsidized consumer in a cheap state. The subsidy is calculated based on the benchmark Silver plan in your specific area, so higher local premiums generate larger credits.

Marketplace vs. Employer vs. COBRA vs. Short-Term

The type of health insurance you have fundamentally changes what you pay. Here is how the four main coverage sources compare on cost in 2026.

ACA Marketplace Plans

Marketplace plans are ACA-compliant and must cover all essential health benefits. The full-price premium for a 40-year-old averages $420 to $665 per month depending on the metal tier. The critical advantage is access to premium tax credits, which can reduce costs dramatically. A single adult earning $35,000 might pay only $150 to $250 per month after subsidies for a Silver plan. Marketplace plans are purchased through HealthCare.gov or a state-based exchange.

Employer-Sponsored Coverage

Employer plans are the most common form of coverage in the United States, covering approximately 155 million people. The average employee pays about $129 per month for single coverage and $575 per month for family coverage, with employers picking up the rest of the total premium. Employer contributions are effectively a tax-free benefit, making this the most cost-efficient option for most working adults. However, you generally cannot use marketplace subsidies if your employer offers affordable, minimum-value coverage.

COBRA Continuation Coverage

COBRA allows you to keep your employer plan for up to 18 months (or 36 months in certain situations) after leaving a job. The catch is that you pay the full premium — both the employer and employee portions — plus a 2 percent administrative fee. Average COBRA premiums run approximately $710 per month for individual coverage and $2,010 per month for family coverage. Losing a job is a qualifying life event that also lets you enroll in a marketplace plan, so always compare COBRA to subsidized marketplace options before electing continuation coverage.

Short-Term Health Insurance

Short-term plans are the cheapest option by monthly premium, typically costing $100 to $250 per month. However, they are not ACA-compliant. They can deny coverage for pre-existing conditions, impose benefit caps, and exclude services like maternity care, mental health treatment, and prescription drugs. Premium tax credits cannot be applied to short-term plans. These plans are designed as temporary gap coverage and carry meaningful financial risk if you need significant care.

The Impact of Enhanced Subsidy Expiration

The enhanced premium tax credits introduced by the American Rescue Plan Act (ARPA) in 2021 and extended by the Inflation Reduction Act (IRA) through 2025 represented the most significant expansion of health insurance affordability since the ACA itself. These enhancements did two critical things: they capped required premium contributions at 8.5 percent of household income for all income levels, and they eliminated the subsidy cliff at 400 percent of the federal poverty level.

With the expiration of these provisions at the end of 2025, marketplace enrollees are seeing real changes in 2026. The Congressional Budget Office estimated that approximately 3 to 4 million people could lose coverage or face substantially higher premiums without the enhanced credits. Here is what the shift looks like for specific income levels:

• Income at 150% FPL (about $22,000 for an individual): Under enhanced subsidies, these consumers paid $0 to $30 per month. Under pre-ARPA rules, they are expected to contribute roughly 2 to 4 percent of income, which could mean $35 to $75 per month.
• Income at 250% FPL (about $37,000 for an individual): Premium contributions may increase from roughly $160 per month to $240 per month under the pre-ARPA subsidy schedule.
• Income at 350% FPL (about $52,000 for an individual): Under enhanced subsidies, these consumers paid no more than 8.5 percent of income. Under pre-ARPA rules, premium contributions could reach 9.5 percent or more of income.
• Income above 400% FPL (above $60,000 for an individual): The subsidy cliff returns. These consumers receive no financial assistance whatsoever and must pay full price, which can exceed $600 to $1,100 per month depending on age and location.

Congressional action to reinstate or modify the enhanced subsidies remains possible, and legislation has been introduced in both chambers. If you are affected, monitor updates through HealthCare.gov and be prepared to reassess your plan choice during any special enrollment period that may be opened.

Before and After Subsidy Costs

The gap between the sticker price of a marketplace plan and what you actually pay after premium tax credits can be enormous. The subsidy is calculated as the difference between the cost of the benchmark Silver plan in your area and a percentage of your household income based on a sliding scale. You can then apply that dollar amount to any metal tier plan.

Here is an example for a single 40-year-old earning $40,000 per year in a market where the benchmark Silver plan costs $560 per month:

• Expected contribution: approximately 8 percent of income, or $267 per month.
• Premium tax credit: $560 minus $267 equals $293 per month.
• After-subsidy Silver cost: $267 per month.
• After-subsidy Bronze cost: If the Bronze plan costs $420 before subsidies, applying the $293 credit makes it $127 per month.
• After-subsidy Gold cost: If the Gold plan costs $665 before subsidies, applying the $293 credit makes it $372 per month.

This flexibility is one of the most powerful features of the subsidy system. You can use the same credit to buy a cheaper Bronze plan and pocket the premium savings, or apply it to a Gold plan and get lower out-of-pocket costs when you use care. The choice depends on your expected healthcare needs and financial situation.

The Benchmark Silver Plan Explained

The benchmark plan is the second-lowest-cost Silver plan available in your county for your age. It is the linchpin of the entire subsidy calculation. The government does not tell you which plan to buy — it simply uses the benchmark to determine how much assistance you receive. You are free to apply your credit to any bronze, silver, gold, or platinum plan sold through the marketplace.

Benchmark premiums change every year because insurers adjust their rates. If the benchmark plan gets more expensive, your subsidy increases to match, keeping your expected contribution roughly stable. If a new insurer enters your market and offers a cheaper Silver plan, the benchmark may drop, reducing your subsidy. This is why shopping every year matters — even if you keep the same plan, your net cost could change because the benchmark shifted.

In 2026, the national average benchmark Silver plan premium for a 40-year-old is approximately $560 per month, or $6,720 per year. In the least expensive counties, it can be as low as $350, and in the most expensive, it can exceed $900.

Family vs. Individual Coverage Costs

On the individual marketplace, there is no flat family rate. Your total household premium is the sum of each family member's individual premium based on their own age. This means a family of four with two 40-year-old parents and two children under 14 would pay roughly $475 plus $475 plus $265 plus $265, totaling approximately $1,480 per month for the benchmark Silver plan before subsidies.

Premium tax credits are calculated on the full household benchmark premium, so families often receive substantial assistance. A family of four earning $70,000 per year could see a monthly subsidy of $800 or more, reducing their effective premium to $680 or less per month for Silver coverage.

Employer coverage works differently. Most employers offer a single flat rate for employee-only coverage and a separate rate for family coverage. The average employee share for family coverage through an employer is approximately $575 per month — far less than the unsubsidized marketplace family premium. However, families with lower incomes and access to affordable employer coverage for the employee may find that marketplace subsidies make it cheaper to cover the spouse and children through the exchange while the employee stays on the employer plan.

How to Lower Your Health Insurance Premium

While you cannot change your age or move states solely to save on insurance, there are several proven strategies to reduce what you pay each month.

1. Claim every subsidy dollar you qualify for. Apply through HealthCare.gov or your state exchange. Report your income accurately, and update it if it changes mid-year. An estimated 10 to 15 percent of eligible consumers do not claim their premium tax credit.
2. Choose a lower metal tier. Switching from Gold to Silver or Silver to Bronze can save $100 to $250 per month. Just make sure you have the financial cushion to handle the higher deductible if you need care.
3. Shop and compare every year during open enrollment. Insurers restructure plan designs and adjust premiums annually. The best deal last year may not be the best deal this year. Spending 30 minutes comparing plans could save you hundreds of dollars over 12 months.
4. Consider an HSA-eligible high-deductible health plan. These plans have lower premiums and allow you to contribute to a Health Savings Account with triple tax advantages — tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
5. Quit tobacco. In states that allow the tobacco surcharge, quitting can reduce your premium by up to 50 percent. Many insurers provide free cessation programs. Premium tax credits do not offset the surcharge, so this savings comes entirely out of your pocket.
6. Check if Medicaid or CHIP covers your family. In the 40 states (plus D.C.) that have expanded Medicaid, adults earning up to 138 percent of the federal poverty level qualify for no-premium or very low-premium coverage. Children may qualify for CHIP at higher income levels.
7. Compare employer and marketplace options side by side. If one spouse has employer coverage, run the numbers for both scenarios — everyone on the employer plan versus splitting coverage between the employer plan and a subsidized marketplace plan for the non-employee spouse and children.

2026 Premium Trends and What to Expect

Several factors are shaping health insurance costs in 2026. Average marketplace premiums before subsidies have increased by approximately 6 to 8 percent compared to 2025, driven by rising medical costs, increased utilization of healthcare services, higher prescription drug spending, and the lingering effects of post-pandemic care catch-up. Employer premiums have followed a similar trajectory, with average increases of roughly 7 percent year over year.

The expiration of enhanced subsidies is the most significant policy change affecting what consumers actually pay. While base premiums have risen moderately, the loss of enhanced credits means after-subsidy costs have jumped substantially for millions of enrollees, particularly those earning between 300 and 400 percent of the federal poverty level and those above 400 percent who now face the return of the subsidy cliff.

On a positive note, insurer participation in the marketplace continues to grow, with an average of more than five issuers per state. Greater competition tends to moderate premium growth over time. Several states have also implemented reinsurance programs that reduce premiums by 10 to 20 percent for all individual market enrollees in those states.

The Bottom Line

Health insurance costs in 2026 vary widely, but the national averages provide a useful starting point. An individual marketplace plan costs roughly $420 to $665 per month before subsidies depending on the metal tier, employer coverage costs employees about $129 per month for single coverage, COBRA runs $710 or more per month, and short-term plans range from $100 to $250 per month with significant coverage limitations.

The most important action you can take is to check your subsidy eligibility. Even with the expiration of enhanced credits, the premium tax credit system still provides meaningful assistance to millions of Americans. Visit HealthCare.gov or your state exchange, enter your zip code and income, and compare plans across all metal tiers. Look at the total estimated annual cost — premium plus expected out-of-pocket spending — not just the monthly premium number.

If you are between jobs, compare COBRA to marketplace plans before making a decision. If you have employer coverage, ask your HR department for the Summary of Benefits and Coverage to understand the true cost. And regardless of your situation, revisit your options every year during open enrollment — the plan landscape changes constantly, and a few minutes of comparison shopping can save you hundreds or even thousands of dollars over the course of the year.