How Much Is Obamacare a Month for a Single Person?
November 12, 2024 | Johanna Karlsson
The cost of health insurance under the Affordable Care Act (ACA), commonly known as Obamacare, varies significantly depending on several factors, including income, location, and the specific plan chosen. For a single person, premiums can range from as low as $0 per month to several hundred dollars, with financial assistance through subsidies available to those who qualify based on income. Keep reading to learn more on how much is Obamacare a month for a single person.
ACA health insurance aims to make healthcare more affordable and accessible to individuals struggling to obtain coverage. However, despite the availability of subsidies, the monthly cost of premiums remains a significant concern for many Americans, especially those whose incomes fall just outside the subsidy range. At HealthPlusLife, we help individuals navigate the complex world of insurance and enable them to get what they’re entitled to through Obamacare. We can educate you on how much Obamacare is a month for a single person and guide you through the registration process.
How Much Does a Single Person Spend on Healthcare?
According to the Peter G. Peterson Foundation, Americans’ healthcare costs hit $4.5 billion in 2022, averaging $13,493 per person. For reference, the average person in the U.K. spent £4,188 ($5,408.13 U.S.) in 2021. Healthcare costs in the U.S. are high. However, the amount a single person spends on healthcare can vary widely based on factors like health insurance coverage, age, geographic location, and health status.
The list below expands on some variations in cost:
Health Insurance Premiums: For a person insured through an employer, the average monthly premium for single coverage is typically around $600 to $700 per month. However, this can vary depending on the plan. For individuals who purchase insurance through the Health Insurance Marketplace (ACA), monthly premiums can be lower if they qualify for subsidies based on their earnings. In some cases, subsidies can reduce the cost to $0 per month for low-income individuals.
Out-of-Pocket Expenses: On average, the out-of-pocket expenses for a person with insurance could be around $1,000 to $2,000 per year, depending on the plan’s deductible and coverage structure.
Out-of-Pocket Health Costs for Uninsured Individuals: The costs can be significantly higher for those without health insurance. Primary doctor’s visits can range from $100 to $300 per visit, while more complex services like emergency room visits can cost several thousand dollars.
Additional Healthcare Costs: Dental insurance premiums can range from $20 to $50 per month, and vision insurance can cost $10 to $30 monthly. Additionally, a recent survey found that the average American spends about $1,200 annually on prescription drugs.
Government Assistance and Public Health Programs: Healthcare costs can be substantially lower for those who qualify for government assistance. Medicaid, for example, provides free or low-cost health coverage for low-income individuals and families.
While government programs like Medicaid and ACA subsidies can help lower costs, healthcare remains one of the most significant ongoing expenses for many individuals in the U.S. That’s why companies like HealthPlusLife can be an invaluable resource, helping you get the most coverage possible for the lowest monthly cost. Understanding how much Obamacare is a month for a single person is an excellent first step to choosing the best insurance for you.
Who Actually Pays for Obamacare?
The cost of Obamacare is primarily funded by a combination of taxpayer dollars, insurance companies, and employers, with individuals also contributing through premiums and out-of-pocket costs. The federal government is the largest funder of the ACA, providing subsidies to help lower-income individuals afford insurance purchased through the Health Insurance Marketplace.
Insurance companies also contribute to funding the ACA. They are responsible for offering health plans through the ACA marketplace. However, they do not bear the total cost of coverage. Instead, they receive payments from the government for cost-sharing reductions (CSRs) that lower out-of-pocket expenses for eligible individuals.
Employers are another source of funding for the ACA, particularly large employers with 50 or more full-time employees. These organizations are required to offer health insurance or face penalties. Many employers offer health insurance plans where they pay a portion of the premium costs, but employees also contribute. While subsidies can reduce the amount individuals pay for premiums, many still face out-of-pocket expenses like deductibles, copayments, and coinsurance.
Do You Pay Back Obamacare?
Whether you have to pay back Obamacare depends on the subsidies or tax credits you receive. If you qualified for premium tax credits to lower your monthly health insurance premiums through the ACA Marketplace, you might need to pay back some or all of those credits when you file your taxes. This can happen if your income exceeds what you estimated when applying for coverage.
The ACA provides income-based subsidies. However, if your income is more than the limit for receiving those subsidies, you may owe some money back. The amount you have to repay depends on how much your income exceeds the subsidy threshold, but the ACA sets caps on how much you can owe back, with lower repayment limits for those with lower incomes. Similarly, if you received cost-sharing reductions (CSRs), which reduce out-of-pocket costs like copays and deductibles, you may need to pay some of that back if your income changes.
However, if your income is lower than expected, you could qualify for additional help or receive a refund. To avoid repayment, it is important to update the Marketplace with any income or household size changes.
Does Obamacare Lower Your Tax Return?
Obamacare doesn’t directly lower your tax return but can affect your tax refund or liability if you receive premium tax credits or cost-sharing reductions. If you qualify for subsidies based on your income, the amount you owe or receive back on your tax return can change depending on your actual income versus what you estimated when applying for coverage.
If your income was higher than expected, you might owe money back. Conversely, if your income was lower, you might qualify for more assistance and receive a larger refund. Just update your income with the ACA Marketplace so the figures are accurate.
Contact HealthPlusLife If You’re Wondering How Much Obamacare Is a Month for a Single Person
If you’re wondering how much is Obamacare a month for a single person, it’s best to contact HealthPlusLife for personalized assistance. We can help you navigate the Health Insurance Marketplace and provide a clearer picture of your potential monthly premiums based on your income, location, and coverage needs.
Since premiums can vary significantly depending on factors like subsidy eligibility and the type of plan you choose, HealthPlusLife can give you specific information about the available plans and help you determine if you’re eligible for financial assistance to lower your monthly costs. So contact our team of experts today at 888-828-5064.
Johanna Karlsson Johanna Karlsson is a veteran health and life insurance professional licensed in 50 states. She relocated from the countryside in the south of Sweden and has not looked back. After coming to the United States to attend university, she gained her degree in Public Relations. She brought her public relations skills to a local international health insurance where she discovered a new passion in insurance. After years with that company, Johanna now joins HealthPlusLife to help build a team of licensed insurance agents ready to meet your insurance needs.
