How Age Affects Health Insurance Costs
Health insurance costs more as you get older because you usually need more medical care as you age.
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Average cost of health insurance plans by age
The monthly cost of health insurance is $486 for a 21-year-old who pays full price. Rates go up to $621 at age 40 and $1,319 at age 60.
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Age is one of the biggest factors for setting the cost of your health insurance.
- Older adults pay more for health insurance: Insurance companies set higher rates when you're in your 50s and 60s because you usually need more medical care as you get older. By charging more each month, the insurance company is calculating that it will collect enough money across all policies to pay for the medical bills of its customers.
- Cheaper health insurance when you're young: Health insurance is cheapest for young adults, teenagers and children. Young people are less likely to need the same level of medical care as seniors.
Average cost of health insurance by age
Age | Monthly cost |
|---|---|
| 0-14 | $372 |
| 15 | $405 |
| 16 | $417 |
| 17 | $430 |
| 18 | $444 |
Rates are for full-priced Silver plans bought on the marketplace and do not consider the cost of Medicaid, Medicare, or coverage through an employer. Rates are calculated using the federal age-rating ratios, starting with the national average rate for a 40-year-old in 2025.
Rules about health insurance costs by age
Federal guidelines determine how much your age can impact your cost of health insurance. For example, a 64-year-old can't be charged more than three times as much as someone in their early 20s.
These guidelines apply to most people. However, there are different rules in eight states and Washington, D.C.
Low rates at age 21
Higher rates by age 40
Very high rates at age 50
Most expensive rates after age 60
Cheapest rates for children and teenagers
Using subsidies to save on health insurance
Health insurance subsidies are one of the best ways to get affordable health insurance. The subsidies will give you a discount based on your income, which are usually large savings.
You can get these health insurance discounts at any age, as long as you meet the income limits and are not eligible for another plan,
For example, by using subsidies, you won't pay more than 8.5% of your income for health insurance, and you will pay even less with a low income.
Health insurance costs for age 55 and older
In 2025, health insurance costs $1,084 per month at age 55 and $1,458 per month at age 64.
That's based on the average rate for a Silver plan bought on the marketplace. The cost of health insurance after age 55 is two to three times higher than for someone in their early 20s.
Age |
Average monthly cost
|
How much more than the base rate
|
|---|---|---|
| 55 | $1,084 | 223% |
| 56 | $1,134 | 233% |
| 57 | $1,184 | 244% |
| 58 | $1,238 | 255% |
| 59 | $1,265 | 260% |
Health insurance costs at age 60
The average cost of health insurance at age 60 is $1,319 per month.
At age 60, health insurance costs 271% more than the rate paid by someone aged 21. That's for a full-price plan on the marketplace.
That means at age 60, you could pay $15,828 per year for health insurance if you're shopping for your own plan and don't qualify for discounts.
Health insurance costs for age 62 to 65
Health insurance costs an average of $1,396 per month at age 62 and $1,458 per month at age 65.
These high rates can have a big impact on your budget if you retire early and have to pay full price for insurance.
- For the three years from age 62 through 64, you could pay a total of $51,458 for health insurance after your monthly bills are added together. Plus, you'll have costs for medical care and prescriptions.
- Your health insurance costs will nearly always go down at age 65 after you sign up for Medicare. The cost of Medicare is usually between $185 and $409 per month in 2025, depending on the coverage options you choose.
Health insurance premiums for a 70-year-old
At age 70, the cost of health insurance usually starts at $185 per month for Original Medicare and can total more than $400 per month if you choose the best Medicare Supplement plans.
Once you're eligible for Medicare at age 65, it's nearly always better and cheaper to choose Medicare over private health insurance.
- Your choice between Medicare Advantage and Medicare Supplement can affect both your monthly costs for insurance and how much you pay when you get medical care. In general Medicare Supplement plans have higher monthly costs than Medicare Advantage, but they will pay for more of your medical bills.
- If you have a low income, you can make Medicare cheaper with the Medicare Savings Program. This program can help lower the monthly cost of Medicare and, in some cases, help you pay for medical care.
How much does health insurance cost for young adults and teenagers
The average cost of health insurance is $444 per month for 18-year-olds and $498 per month for 26-year-olds.
Young adults have some of the cheapest rates on health insurance. That's because insurance companies calculate that young adults usually have cheaper medical costs.
- When shopping for health insurance on the marketplace, young adults pay the same amount for a plan whether getting coverage as a part of a family plan or buying on their own. That's different from car insurance rates for young drivers, where it's much cheaper to have a family plan.
- However, health insurance rates can change if you're switching the type of coverage you have. For example, if you're changing from having insurance through work to buying your own plan on the marketplace .
Cost of Obamacare health insurance at age 18
The cost of Obamacare health insurance at age 18 is $444 per month, on average, for a full-priced Silver plan.
Most health insurance plans cost the same amount for men and women. That's because of the rules set by Obamacare, which is also called the Affordable Care Act (ACA).
You can't be denied a policy because of a pre-existing medical condition, and plans must provide what's called minimum essential coverage. That means plans include prescription benefits, doctor appointments, and hospital care.
Teenagers can get their own health insurance through Medicaid, a student health plan, the Obamacare marketplace (also called HealthCare.gov).
Teens shopping for their own health plans on HealthCare.gov are only be eligible for discounted rates on health insurance if no one claims them as a tax dependent.
Cost of health insurance for ages 19 and 20
Health insurance costs an average of $457 per month for 19-year-olds and $471 per month for 20-year-olds.
That's for a Silver plan that gives you good all-around coverage. But if you only need basic coverage, consider a Bronze or catastrophic plan. This can help you lower your monthly costs. However, the tradeoff is that you'll pay more when you need medical care or prescriptions.
Before choosing a lower level of coverage, make sure you have enough savings to cover the plan's deductible so you can pay your medical bills if you do have an accident or injury. That could mean a savings of about $6,000 for a Bronze plan and $9,200 for a catastrophic plan. For most people, catastrophic plans aren't a good deal because they have a very high deductible and aren't eligible for discounted rates based on your income.
Cost of health insurance for age 24
The average cost of health insurance at age 24 is $486 per month. That's for a plan you buy yourself on the government marketplace, which is HealthCare.gov in most states.
Rates will go up as you get older. By age 26, when you can no longer be on your parent's health insurance plan, the cost of health insurance averages $498 per month.
Do all states follow the same rules about the cost of health insurance by age?
No, eight states and Washington, D.C. use different rules for calculating the cost of health insurance by age.
- Alabama
- Minnesota
- Mississippi
- Oregon
- New York
- Vermont
- Massachusetts
- Utah
- Washington, D.C.
States where young people pay lower rates
In Alabama, Minnesota , Mississippi and Oregon, each health insurance plan has a flat rate for those under age 21.
- At age 21, rates start to increase, following the federal guidelines.
- In Alabama, Mississippi and Oregon, people under age 21 pay 37% less than the base rate.
- In Minnesota, people under age 21 pay 11% less than the base rate.
States where your age doesn't affect the cost of health insurance
New York and Vermont don't allow health insurance companies to use your age when setting the cost of health insurance plans.
- This usually means that younger people pay higher rates than in other states, while older people pay lower rates.
- Although your age doesn't change the cost of health insurance in NY and VT, other factors can, including the plan tier you buy and what company you choose.
Other state rating systems for age
Massachusetts, Utah and Washington, D.C. have their own unique ways of using age to set health insurance costs. In these areas, some ages are charged more than the federal guidelines, while others are charged less.
- Massachusetts: Health insurance rates in MA are cheaper than federal standards before age 21. They're more expensive than federal standards throughout middle age. Then they return to being cheaper in your later years, starting at age 49.
- Utah: Health insurance age calculations in Utah generally mean rates go up more quickly after age 21, than the federal standards. By the time you reach age 59, you'll be paying three times as much as a 21-year-old. In other states, you don't hit that point until you turn 64.
- Washington, D.C.: Age has less of an impact on the cost of health insurance in Washington, D.C., than it does in other states. Your rate still increases with age, but it's a smaller and more gradual change.
Frequently asked questions
Does age affect my health insurance rates?
Yes, age affects your health insurance rates in most states. The average cost of health insurance is higher for older people since you typically need more medical care as you age. But insurance companies have to follow state and federal laws about how rates change by age. Someone who is 64 or older can't be charged more than three times what a 21-year-old pays, for example.
Does my state use age to set health insurance rates?
Do employers determine health plan rates by age?
It depends on the size of your employer. Large employers don't usually use age to set your rates, although they are allowed to in some circumstances. Small employers, those with 50 or fewer employees, are allowed to use your age to rate your policy. But they do have to follow federal guidelines on how much they charge.
Methodology
ValuePenguin used Centers for Medicare & Medicaid Services (CMS) public use files (PUFs) and costs from state health insurance marketplaces to calculate the average cost of health insurance.
All rates are based on 2025 Silver health insurance plans sold on the marketplace. The cost differences by age are based on the default age rating information from CMS with our calculations based on the the national average cost of health insurance for a 40-year old.
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