Protecting the health and well-being of yourself and your family is essential, but so is avoiding unexpected costs associated with healthcare. If someone in your family has a medical emergency and is uninsured, even minor incidents can end up breaking the bank. Health insurance can keep you, your family, and your wallet healthy. So, how much is family health insurance? Keep reading to find out.
Average Monthly Cost of Family Health Insurance
Insurance premiums are monthly payments that policyholders must make to stay enrolled in a plan. According to a recent study, the average monthly cost for family health insurance in 2020 was $1,152. It’s important to note that this is an average – monthly premiums can vary greatly depending on several factors, including your location, the size of your family, and the level of coverage you receive.
Average Annual Deductible for Family Health Insurance
Deductibles are another typical cost you’ll be responsible for covering with most family health insurance plans. This is an annual out-of-pocket charge you must pay before insurance picks up the payments. Once you’ve paid the set deductible, your insurance will usually cover the remainder of your care for the year. According to the recent study above, the average annual deductible for family health insurance plans in 2020 was $8,439. Again, this amount can vary greatly.
Additional Costs Associated with Family Health Insurance
In addition to the monthly premium and annual deductible, you can expect to cover some additional costs with most family health insurance plans.
A co-pay is a fixed charge you must pay before receiving a service covered by the plan. This fee may be effective prior to reaching your deductible or after reaching it.
Coinsurance is a fixed percentage you must pay before receiving a service covered by the plan. This fee goes into effect after you reach your deductible. You’ll be responsible for covering coinsurance payments until you reach the out-of-pocket maximum.
An out-of-pocket maximum is an annual cap on how much you must pay for your family’s health insurance coverage. Once you’ve reached this set limit, the insurance will kick in and cover 100 percent of the cost for all benefits and services covered in the plan for the remainder of the year.