The Average Cost of Health Insurance Per Person

The average cost of health insurance depends on a variety of factors, including who is paying for the cost of health coverage. Costs for health care include premiums that are paid for Medicare, a group health insurance policy paid by an employer and individual insurance policies. Individual costs for health insurance can include out-of-pocket costs such as premium payments, deductible and co-payments. Costs also include payments that are made on a monthly or yearly basis.

National Average

• The national average for health care costs per person is increasing drastically each year. In 2007, the average cost per person for health insurance coverage was $7,421, which was an increase of 6 percent compared to the previous year. In 2008, the average cost for health care per person surpassed $8,000. The yearly increases for health care are outstripping inflation.

Single Coverage

• Health care costs for single coverage have risen each year for employers that provide a group health insurance policy to their employees. Employer premiums for coverage from 2006 to 2007 increased 6 percent. Employers paid an average of $4,479 per employee for health insurance coverage during that period.

Worker Contributions

• The contributions that employees make toward their health care costs are also increasing each year. Employees who have single coverage contributed an average of about $730 toward their health insurance premiums in 2007.

Out-of-Pocket Costs

• Employees who pay out-of-pocket costs typically pay a deductible, a co-payment and co-insurance amount. Deductible amounts per employee range from $400 and $460, depending on whether a preferred provider organization or health maintenance organization was used. When a co-payment was applied, the costs averaged nearly $210 in 2007.

High Deductible Health Plans

• Many individuals have high deductible health insurance plans either through an employer or an individual health insurance policy. Deductibles for these types of health plans can range from $2,000 to $3,000 or more, depending on what is chosen for the plan. The deductible cost for these health plans can be offset when a health reimbursement or health savings account is used.

Medicare and Medicaid

• The costs of Medicare and Medicaid are also increasing each year as more money is spent as people age or lose their jobs. These programs are going to have a bigger share of individual costs not only to state and federal government, but to every person who pays premiums and deductibles.