How Much Does Individual Health Insurance Cost?

Last week, health care , while addressing President Obama on health care reform, he stated that one of the major problems with the current system is that health insurance in the private market costs three, health care , times as much as in the group insurance market. This is one of the biggest misconceptions in healthcare, health care , . Health insurance in the private market is typically 1 / 2 to 1 / 3, health care , of the price of comparable coverage in the group market.What this misconception drives There are two good reasons for this well know misconception. The first reason is that individual health insurance plans in the past were more expensive than group plans. Over time, the group plans increased faster than overall medical inflation, while individual insurance typically limits of their annual bonuses had. The second reason for the misconception is that most consumers never cover the full amount of their pay in the group market. Companies split the cost of insurance between the employee and, health care , the company.According Kaißer to the 2009 Family Foundation and the Health Benefits Survey, the average monthly contribution to the group employee health insurance are $ 65 for a single and $ 293 for a family. What the employee does not normally see that the employer is a significantly larger proportion of the costs. The, health care , 2009 average monthly premium for group health insurance are $ 402 for, health care , a single person and $ 1114 for a cost family.How an individual policy cost There are a number of variables that play into the cost of the individual / family health insurance, but most people find health insurance for less than $ 402 for a single and $ 1114 for a family in the private market. The following table provides examples of their own pricing policies. What is the solutionEmployers can now contribute to the cost, health care , of private, health care , insurance plans on a tax-free basis as they have, health care , done with the group health, health care , insurance. Instead of splitting the cost of expensive group health insurance, employers may establish a defined contribution from an HRA to their employees and more affordable private insurance to buy. Employees get better coverage because the insurance costs less, based on their individual or family needs, and is independent of employment. Because the insurance is less expensive, smaller employers to save contributions.Personal health are the best and fastest growing, health care , form of the American health insurance. The personal health number of members grew from 12 million in 2002 to 24 million members in 2008, and is expected to 30 million members in 2010. In contrast, the number, health care , of people under employer group policies is significantly declinedâ € "approximately 43% of U.S. employers now offer small group policies.