Cheap Private Health Insurance [2025]
Private health insurance costs vary by company, but monthly rates start at $450. Catastrophic coverage and short-term policies can cost less, but most private health insurance plans are expensive unless you qualify for employer-sponsored coverage.
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Table of Contents
Table of Contents
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Brandon Frady
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Travis Thompson
Updated February 2024
- Private health insurance is any health insurance not offered by the state or federal government
- Options for private health insurance include coverage through your employer, a catastrophic plan, or a short-term plan
- Your private health insurance rates will be most impacted by your health history and your family’s health history
If you are fairly new to health insurance, you may want to learn more about private health insurance costs.
Health insurance can be expensive regardless of your circumstances, but finding affordable private health insurance plans may seem like a daunting task. However, while many assume private health insurance quotes will be too expensive, it is possible to find cheap private health insurance.
As you begin your search for private health insurance companies that fit your budget, read this guide to compare health insurance quotes from multiple companies to find the rates and type of health insurance that best suits your lifestyle.
Comparing Private Health Insurance Costs
The cost of private health insurance ranges between $450-$650 per month for a single individual. How much your health insurance costs depends on a number of factors.
Some of the factors that impact your private health insurance rates with most companies will include:
- Your age
- Your past medical history
- Your job
- Whether you are a smoker
- Your BMI
- Where you live
- The type of plan you choose
Read more: Do Health Insurance Companies Have Access to Medical Records?
Your and your family’s health history could also have a significant impact on your health insurance rates. The table below shows the different classifications you could fall into when it comes to health insurance coverage.
Health Insurance Classifications
| Class | Personal Health | Family History |
|---|---|---|
| Preferred | Nonsmokers in great health with a minor condition | Minor health conditions in family history |
| Preferred Select | Nonsmokers in great health | No family history of health conditions |
| Preferred Smoker | Smokers in great health | No family history of medical conditions |
| Standard | Nonsmokers with average health | Some medical problems in family history |
| Standard Plus | Nonsmokers in good health with a few minor health conditions | Minor conditions in family history |
| Standard Smoker | Smokers in good health | Some medical conditions in family history |
| Table Rating | Poor health | Medical conditions in family history |
If you are considered a preferred policyholder, your health insurance rates are likely to be lower than if you fall into the standard categories. Conversely, if you have had medical issues in the past, you can expect your rates to be higher than average. Learn how to save money in our guide on private health insurance for pre-existing conditions.
For individuals who purchase a health insurance policy through an employer, your health status will not impact your health insurance rates much. However, you may notice the cost of insurance increase because of other people’s health history who are enrolled in the same plan through your work.
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The Difference Between Public and Private Health Insurance Costs
The government provides public health insurance for free or at a reduced cost for individuals and families who qualify. Private health insurance is any health insurance policy offered by a private company, rather than the state or federal government, for a premium.
Public health insurance plans include:
- Medicare
- Medicaid
- The Children’s Health Insurance Program (CHIP),
- Veteran’s Health Administration (VHA)
- Other federal or state health plans
Private health insurance includes almost anything not included in the list above. If you have ever had health insurance through your employer or purchased health insurance through a university, you have had private health insurance.
The major difference between public and private health insurance is whether you are eligible.
Most people who qualify for coverage under public health insurance plans do so based on their age and their income. Many people find that they do not qualify for public health insurance based on these factors, so they seek out private health insurance plans instead. (For more information, read our article Is private health insurance tax-deductible?).
How to Save Money on Private Health Insurance
If you find yourself searching for private health insurance, you have a few options to choose from, such as:
- Enrolling in a health insurance plan through your employer
- Selecting a private health insurance plan through a licensed agent
- Choosing a plan from the federal or state marketplace
- Enrolling in catastrophic coverage
- Choosing short-term health insurance
While all the options above are viable, you may find that some will not work well with your lifestyle or overall needs.
Reduce Private Health Insurance Costs With Catastrophic Coverage
Some people who consider themselves to be quite healthy choose to enroll in catastrophic plans. These plans help to cover hospital bills after accidents or major medical events but often do not cover routine check-ups with a doctor or simple doctor visits.
With a catastrophic plan, you stand to save a lot of money in monthly premiums, but you could end up paying a lot when it comes to standard medical care.
Reduce Private Health Insurance Costs With a Short-Term Policy
Most short-term health insurance policies last anywhere from 30 days to 12 months. You can choose the length of time depending on your needs and how long it might take to get a new plan. Read our UnitedHealthcare short-term insurance review to compare rates.
Short-term health insurance is beneficial if you are in between jobs, need flexible coverage, or cannot afford a standard health insurance policy. Much like catastrophic coverage, short-term health insurance may not cover much when it comes to regular visits to your doctor and may instead only cover emergency services.
Read more: How much does long term care insurance cost?
The Best Way to Find Affordable Private Health Insurance Rates
Your best bet when it comes to finding private health insurance is shopping around to find rates that work with your budget. You can see our free comparison tool above to find affordable companies that offer health insurance in your state. We can also connect you with local insurance agents who may be able to find a great deal on coverage for you.
Regardless of the results you get, be sure to shop around and compare quotes before making any final decisions on coverage. We compare three companies or more to guarantee you’re getting the lowest private health insurance quotes possible.
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Case Studies: Finding Affordable Private Health Insurance
Case Study 1: John’s Affordable Private Health Insurance
John, a 35-year-old individual, was in search of affordable Private Health Insurance for Pre-Existing Conditions. He compared quotes from multiple companies and found a plan that fit his budget. By opting for a catastrophic coverage plan, he was able to save on monthly premiums.
Although the plan didn’t cover routine check-ups or simple doctor visits, John was confident that he could manage those costs out-of-pocket. This case study highlights the possibility of finding cheap private health insurance by exploring different coverage options.
Case Study 2: Mary’s Cost-Saving Strategy With Short-Term Policy
Mary, a 28-year-old professional between jobs, needed temporary health insurance coverage. She opted for a short-term health insurance policy that lasted for six months. This policy provided her with flexible coverage and allowed her to save money while she was in transition.
Although the short-term policy didn’t cover regular doctor visits, Mary felt secure knowing that she was protected in case of emergencies. This case study showcases how a short-term policy can be a cost-saving solution for individuals facing specific situations.
Case Study 3: Jack’s Comparison Shopping for Private Health Insurance
Jack, a 42-year-old individual, wanted to find the best private health insurance rates. He used a comparison tool to explore different companies and their offerings. Jack compared quotes from multiple insurance providers and found affordable rates that aligned with his budget.
By shopping around and comparing options, Jack was able to secure a suitable private health insurance plan without overspending. This case study emphasizes the importance of comparing quotes from various companies to find the most cost-effective coverage.
Frequently Asked Questions
What is private health insurance?
Private health insurance is any health insurance policy offered by a private company or rather than the state or federal government. If you have health insurance through your employer or purchased a policy through a university, you have private health insurance.
How much does private health insurance cost?
Monthly private health insurance rates average between $450 and $650.
What are the differences between public and private health insurance?
Public health insurance, like Medicare and Medicaid, is available through the federal or state government. You must be eligible for public health insurance based on income. Private health insurance is available to everyone but has more expensive premiums.
Is private health insurance tax deductible?
While your insurance premiums are not tax deductible, you can deduct any health insurance costs you pay out-of-pocket, including deductibles.
How can I lower my private health insurance costs?
Many individuals who are shopping for private policies in the U.S. Health Insurance Marketplace can qualify for credit towards their premiums based on income. However, you’ll get the best rates if you qualify for coverage with an employer.
In exchange for lower rates, you may also reduce your coverage with a catastrophic or short-term policy.
What is catastrophic coverage?
These plans cover hospital bills after accidents or major medical events but often do not cover routine check-ups or simple doctor visits.
How long does short-term private health insurance last?
Most short-term health insurance policies last from 30 days to 12 months.
What’s the easiest way to find private health insurance?
Getting coverage through your employer is the easiest way to qualify and pay the lowest private health insurance rates.
Are there any additional expenses besides the monthly premiums for private health insurance?
Yes, besides the monthly premiums, there may be additional expenses associated with private health insurance. These can include deductibles, co-payments, and coinsurance, which are typically paid out-of-pocket when you receive medical services.
It’s important to understand the details of your insurance policy and consider these additional costs when evaluating the overall affordability of a plan.
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