Understanding Arizona Health Insurance Premiums

What You’ll Pay Each Month Is A Big Factor When Choosing Health Coverage

As with most aspects of health insurance, understanding Arizona health insurance premiums can be complicated and confusing. But knowing what your premium is, how insurance companies calculate it, and how the amount may change over time is critical to evaluating plans and ensuring that the plan you choose meets your budget and needs. Whatever your premium is, you must factor the monthly expense into your financial planning and budgeting. As such, educating yourself about the ins and outs of Arizona health insurance premiums is well worth your while.

What Is a Health Insurance Premium?

As with other forms of insurance like auto and home, Arizona health insurance premiums are the amount you pay the insurance company for your coverage. Whether you purchased an individual or family policy through healthcare.gov, through a licensed health insurance agent, or directly from an insurer, you are responsible for paying the entire premium every month or when otherwise required by your policy. (If you enrolled in group health insurance coverage through your employer, you will likely still be responsible for paying part of the premium, but your employer will also contribute to the premium to help you defray the costs.)

All of the benefits your health insurance plan provides are contingent upon you paying your premium as scheduled in your policy. If you fail to make a scheduled payment, you could lose your coverage and expose yourself and your family to financial catastrophe if someone gets seriously sick or injured.

Related: Understanding Health Insurance Deductibles in Arizona

What Determines The Cost of Arizona Health Insurance Premiums?

Under the Affordable Care Act (ACA), health insurers can only consider five specific factors when calculating the premium they will charge a proposed insured. These factors are:

• Age: Since we typically require more medical care and treatment as we age, insurance companies generally charge higher premiums for older people (up to three times as much) than for younger ones.
• Location: Where you live will play a significant role in how much your Arizona health insurance premiums are, as insurers set rates based on things like the amount of competition in the market, state and local laws, and the cost of living. This is why working with an independent health insurance broker near you is essential to getting the right plan at the right price.
• Smoking: Smoking causes all types of known health problems. If you smoke, insurers will consider those likely problems when setting your premium and may charge up to 50% more than the premium they would set for a similarly situated non-smoker.
• Individual vs. family enrollment: The more people that are covered by a health insurance policy, the higher the premiums will likely be.
• Plan category: There are five categories of health insurance plans available under the ACA: Bronze, Silver, Gold, Platinum, and Catastrophic. While all plans must provide essential health benefits, the plans differ in premiums and out-of-pocket costs for deductibles, copays, coinsurance, etc. The lower the premium (Bronze), the higher the out-of-pocket costs.

The ACA also prohibited health insurance companies from using two previously common factors to calculate premiums: gender and preexisting health conditions.

What Are The Average Arizona Health Insurance Premiums in 2023?

According to Forbes magazine, the average monthly premium in 2023 for a Bronze tier plan is $928, $1,217 for a Silver plan, and $1,336 for a Gold plan.

As noted, premiums vary due to several factors, including age. In 2023, average premiums for ACA plans based on age groups are as follows:

• Child age 0-14: $277
• Child age 18: $326
• Adult individual age 21: $365
• Adult individual age 27: $386
• Adult individual age 30: $412
• Adult individual age 40: $469
• Adult individual age 50: $655
• Adult individual age 60: $994
• Couple age 21: $730
• Couple age 30: $834
• Couple age 40: $937
• Couple age 50: $1,311
• Couple age 60: $1,987
• Couple+1 child, age 21: $1,007
• Couple+1 child, age 30: $1,110
• Couple+1 child, age 40: $1,214
• Couple+1 child, age 50: $1,588
• Couple+2 children, age 21: $1,284
• Couple+2 children, age 30: $1,387
• Couple+2 children, age 40: $1,491
• Couple+2 children, age 50: $1,864

Of course, these costs do not take into account any premium tax credits your family may be eligible to receive, which may lower the monthly cost of your Arizona health insurance premiums.

Looking for More Help Understanding Arizona Health Insurance Premiums? Speak With an Expert Today.

Figuring out how health insurance premiums work is just one of the many challenges Arizonans face when seeking coverage. Working with an experienced Arizona health insurance broker is the best way to get your questions answered and find a policy that fits your family’s needs and budget.

Arizona Health Insurance Experts connects Arizonans with the state’s most extensive collection of independent insurance agents and brokers. This partnership delivers the exceptional customer experience you deserve and the family health insurance coverage you need.

Find a broker near you today.