How to Find the Cheapest Health Insurance

Finding the cheapest health insurance is becoming more difficult as costs continue to rise.

In 2024, the average yearly cost for one person was $8,951. A family plan can cost around $25,572. The cost of an average family premium has more than doubled since 2014.

And the costs continue to rise!

Out-of-pocket costs have been growing faster than inflation, and families are feeling the strain. In a recent poll, approximately 45% of Americans said they’d recently had to skip medical treatment or medicine because of the high cost or lack of access. More and more families cannot afford any kind of health insurance at all.

Meanwhile, too many insurance plans don’t provide adequate coverage. Deductibles and coinsurance costs keep going up, outstripping incomes.

How to Find the Cheapest Health Insurance for Your Situation

Finding an affordable plan that works with your budget is key.

Your cheapest healthcare option often depends on your situation.

Whether you’re employed, have a low or moderate income, or you’re self-employed or an independent contractor or business owner, this article will share some possible healthcare solutions to fit your budget and needs.

Finding Low-Cost Health Insurance When You’re Employed

If you work full-time, you may have access to an employer-sponsored health plan.

If your employer has more than 50 full-time workers, they’re generally required by the Affordable Care Act to offer access to a group health plan, or they must pay steep “shared responsibility penalties” for each employee that buys their own plan on the Marketplace and gets a subsidy.

Most larger employers prefer not to pay these penalties.

If you have access to an employer-sponsored group plan, this is usually the most affordable option. Employers typically cover a significant portion of the premium through their organization, which saves you a lot of money.

Low-Income Employees and Government Assistance

For those with part-time jobs and lower incomes, government programs may be able to help.

Medicaid and the Children’s Health Insurance Program (CHIP) are often the most affordable options for low-income families:

Eligibility for these programs is based on factors like income, household size, assets, and where you live. Medicaid eligibility varies significantly by state, so contact your state Medicaid officials for specifics in your area.

What If I Make Too Much to Qualify for Medicaid?

If you don’t qualify for Medicaid, your income may still qualify for a subsidy under the Affordable Care Act (ACA), also known as Obamacare.

You can find a plan that works for you in the Health Insurance Marketplace.

The Health Insurance Marketplace offers subsidized plans for those who meet certain income thresholds and who don’t qualify for Medicaid.

How Health Insurance Subsidies Work

Under the Affordable Care Act, households who meet certain income thresholds can qualify for premium tax credit subsidies.

These offset your premiums, making your health insurance more affordable.

Normally, you will qualify for a subsidy if your income is less than 400% of the poverty level for your state and household size. But the Inflation Reduction Act has temporarily expanded the premium tax credit eligibility criteria, so you may qualify even if your income is over that threshold, at least for the rest of 2025.

Cost Sharing Reductions (CSRs)

Subsidies help lower your premiums.

If your income is under 250% of the federal poverty level, Silver plans offer additional cost-sharing reductions (CSRs), which lower out-of-pocket expenses like deductibles and copayments.

What Are the Cheapest Health Insurance Plans?

When shopping for the best plan, keep in mind that HMOs (Health Maintenance Organizations) are generally cheaper than PPOs (Preferred Provider Organizations), and can save money on your monthly premium costs.

However, most HMOs also have a downside that includes:

Note: Don’t just look at premiums alone. Also factor in monthly premiums, deductibles, any co-payments or coinsurance amounts, and the out-of-pocket maximums.

You also need to consider whether your doctors are in the plan’s authorized provider network whether the drugs you need are on the plan’s formulary (list of covered drugs), and what the copays are for the specific drugs you need.

Learn More: Health Insurance Secrets: What They Don’t Want You to Know

Health Sharing: The Affordable Alternative

Health sharing plans may be a more affordable alternative to traditional health insurance, especially if you’re in good health, and don’t qualify for a subsidy under the Affordable Care Act.

These plans can be great at helping protect you against unexpected high healthcare costs. And they typically cost up to 50% less than unsubsidized  ACA Marketplace plans.

Health share plans aren’t insurance products. Instead, they are non-profit voluntary associations of like-minded and health-conscious individuals who join together to help share each others’ medical bills.

How Health Sharing Works

Health Sharing Advantages

The main benefits of joining a health share plan include:

Cost Savings

Flexibility and Choice

Additional Perks

If you’re looking to keep your monthly costs as low as possible, Altrua RUBY and JHS Community Healthshare are great programs to look into with flexible cost-sharing options. These programs work best for healthy individuals who have some savings to absorb higher out-of-pocket costs. But they are extremely cost-effective at providing affordable protection against catastrophic healthcare costs.

Are You a Business Owner, Independent Contractor, or Self-Employed?

If you’re in one of these categories, in good health, and you don’t qualify for significant subsidies under the Affordable Care Act, the HSA Secure Plan may be a great option.

HSA Secure is specifically designed to preserve your eligibility to contribute to a Health Savings Account (HSA).

Contributions to an HSA are tax-free, grow tax-deferred as long as the money is in your HSA account, and withdrawals to pay qualified medical and dental expenses are tax and penalty-free!

The tax benefits alone can save you thousands in the first year.

There are a variety of health sharing plans out there that can offer great services at a fraction of the cost of traditional health insurance.

Note: Health sharing plans don’t qualify for subsidies under the ACA. But their costs are so much lower than unsubsidized traditional ACA-qualified health insurance products that they are still a terrific value.

Learn More: Best Healthshare Plans Comparison Guide 2025

Other Ways to Lower Healthcare Costs

For those who still struggle to afford health coverage, there are community-based options and calculation tools that may help.

Here are a few you may find useful:

Remember, eligibility and costs can vary significantly based on your specific circumstances, so it’s important to explore all options and apply directly to see what you qualify for.

Compare Pricing on the Best HealthShare Plans Available