10 Ways to Lower Your Health Insurance Premiums
Health insurance premiums can be high, but you can cut costs without losing coverage. Here are ten smart strategies to help you save:
Compare Plans – Shop around for the best value.
Pick a High-Deductible Plan – Lower premiums in exchange for higher out-of-pocket costs.
Use an HSA – Get tax advantages when paired with a high-deductible plan.
Apply for Subsidies – See if you qualify for ACA tax credits.
Tailor Coverage – Match your plan to your actual healthcare needs.
Consider Catastrophic Plans – For healthy individuals under 30 or with exemptions.
Accept More Cost Sharing – Higher copays or coinsurance can reduce premiums.
Stay Healthy – Preventive care helps avoid expensive treatments.
Join a Group Plan – Associations often offer lower rates.
Review Annually – Make sure your plan still fits your life and budget.
Key Tip: Balance premiums with potential out-of-pocket costs. The right plan depends on your health, usage, and financial comfort.
1. Compare Multiple Health Insurance Plans
Shopping around for health insurance can lead to major savings - often hundreds or thousands of dollars annually. Don’t jump at the first plan you see. Comparing options can reduce your premiums and help you find coverage that fits your healthcare needs.
Cost Savings Potential
The financial benefits of comparing plans can be substantial. For instance, a 30-year-old might pay an average of $413 per month for a bronze plan or $502 monthly for a silver plan. Among providers, Kaiser Permanente offers some of the lower rates, averaging $570 per month, while Aetna and Oscar come in higher at $594 and $610, respectively.
"If you're buying a health plan through the ACA marketplace, I think it's wise to compare health insurance quotes on the marketplace website. Make sure to compare the costs for the same metal tier, so you can gauge the plans accurately." - Les Masterson, Insurance Editor
While bronze and silver plans offer lower premiums, they often come with higher out-of-pocket costs. If you need regular care, a higher-premium plan like gold or platinum could save you more in total yearly expenses.
Suitability for Individual Needs
Choose a plan that fits your health needs. Consider how often you see a doctor, use prescriptions, and your overall health.
Generally healthy, few doctor visits: Bronze plans with low premiums may suffice.
Chronic conditions or regular meds: Gold or platinum plans can save more long-term with lower out-of-pocket costs.
All marketplace plans cover ten essential benefits, but provider networks and drug coverage vary. Always check if your doctors are in-network - directories aren’t always current.
Ease of Implementation
Thanks to online tools and marketplace websites, comparing plans has never been easier. These tools allow you to evaluate plans within the same tier, factoring in deductibles, copays, and out-of-pocket maximums. To make things easier, you can create a simple comparison table that highlights the costs for the services you use most often.
HMO and EPO plans: Tend to have lower premiums but require you to stick to in-network providers.
PPO plans: Offer more flexibility, including out-of-network options and the ability to see specialists without referrals, though they usually cost more.
Impact on Coverage and Benefits
Comparing plans wisely doesn’t mean compromising on essential coverage. Look beyond just the monthly premiums. Evaluate benefits like telemedicine options, prescription drug pricing, provider networks, and out-of-pocket maximums.
Additionally, explore alternative options. Joining a spouse's or parent's health plan could be more affordable than purchasing your own coverage. Statistics show that about 70% of couples opt for a shared plan, while 30% choose separate coverage.
2. Choose a High-Deductible Health Plan (HDHP)
High-deductible health plans (HDHPs) offer lower monthly premiums while still covering essential medical needs. While these plans require higher out-of-pocket payments for healthcare expenses, the savings on premiums can make them appealing for those looking to cut costs.
Cost Savings Potential
HDHPs can offer meaningful savings. In 2023, individuals saved about $314 on premiums, and families saved $1,806 compared to traditional plans. Total annual premiums averaged $8,275 for individuals and $24,196 for families - $676 and $1,376 less, respectively, than the averages across all plan types.
To qualify as an HDHP in 2025, a plan must have a deductible of at least $1,650 for individuals or $3,300 for families. According to a 2024 Bureau of Labor Statistics study, the median annual deductible for private industry workers enrolled in HDHPs was $2,750. These numbers highlight the importance of aligning your plan choice with your healthcare needs and financial situation.
Suitability for Individual Needs
HDHPs are ideal for generally healthy individuals who want emergency coverage and can afford high deductibles. They're especially appealing for those who want to benefit from Health Savings Accounts (HSAs).
However, HDHPs may not be a good fit if you:
Are pregnant or planning to be
Have young or injury-prone children
Need frequent care for chronic conditions
Rely on multiple or expensive prescriptions
Can’t comfortably cover a high deductible upfront
Ease of Implementation
You can switch to an HDHP during open enrollment through your employer or the Health Insurance Marketplace. Before choosing, estimate your annual healthcare costs by weighing premium savings against out-of-pocket expenses like deductibles and copays. Don’t forget the HSA advantage - offering tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
Impact on Coverage and Benefits
Despite lower premiums, HDHPs still cover key services - many preventive care services are fully covered before the deductible. They also have lower out-of-pocket maximums: $8,300 for individuals and $16,600 for families in 2025, compared to $9,200 for non-HDHP plans. After reaching the max, in-network care is fully covered for the year.
HDHPs paired with HSAs have grown in popularity, with enrollment among adults under 65 rising from 4% in 2007 to 19% in 2017 - driven by interest in lower premiums and tax savings.
3. Use Health Savings Accounts (HSAs)
Health Savings Accounts (HSAs) are a smart way to manage healthcare costs while enjoying tax perks. These accounts pair with high-deductible health plans (HDHPs), offering lower premiums and significant tax savings.
Cost Savings Potential
HSAs offer dual benefits: lower premiums through HDHPs and valuable tax advantages. In 2024, individuals can contribute up to $4,150 and families up to $8,300 - with an extra $1,000 allowed for those 55 and older. These contributions reduce your taxable income, providing instant savings.
Beyond short-term benefits, HSAs can grow into a substantial healthcare fund. A 40-year-old couple contributing the max annually could save over $600,000 by age 67, making HSAs a smart tool for both current savings and long-term planning.
Suitability for Individual Needs
HSAs are ideal for those comfortable with high deductibles and focused on saving for future medical expenses. They help lower taxable income and build long-term healthcare savings. From 2005 to 2019, employer offerings of HDHPs with savings options rose from 4% to 28%, showing growing interest.
Unlike FSAs, HSA funds roll over yearly and stay with you - even if you change jobs, switch plans, or retire - making them a flexible, lasting savings tool.
Ease of Implementation
Starting an HSA is simple if you qualify. You must:
Be covered by an HDHP
Have no other disqualifying coverage
Not be enrolled in Medicare
Not be claimed as a dependent
For 2025, HSA-eligible HDHPs must have deductibles of at least $1,650 (individual) or $3,300 (family), with out-of-pocket caps of $8,300 and $16,600, respectively.
When selecting an HSA, compare plan details - deductibles, out-of-pocket limits, and employer contributions. Ensure both your HDHP and HSA provider meet IRS rules. Note: spouses must open separate HSAs. Even if you later become ineligible to contribute, your HSA remains active and can still be used for qualified expenses.
Impact on Coverage and Benefits
HSAs offer tax-free funds for a wide range of qualified medical expenses - like deductibles, copays, prescriptions, vision, and dental care. Withdrawals for these uses are entirely tax-free.
They also provide flexibility for uncovered healthcare costs and serve as a long-term savings tool. HSA funds grow tax-free with no expiration, making them ideal for managing rising healthcare expenses in retirement. By covering out-of-pocket costs tax-free, HSAs help ease the financial burden while keeping premiums lower.
4. Apply for Premium Tax Credits and Subsidies
Premium tax credits are a powerful tool to help cut down your monthly health insurance costs. These subsidies are designed to make Marketplace premiums more affordable, giving many individuals and families a financial break on healthcare.
Cost Savings Potential
The lower your income, the higher your premium tax credit - making these subsidies especially helpful for those on tighter budgets. Thanks to recent updates in legislation, these credits have been expanded. For instance, the Inflation Reduction Act extended premium tax credit benefits through the 2025 coverage year. Additionally, the previous income cap of 400% of the federal poverty line has been temporarily removed for tax years 2021 through 2025, opening the door for many middle-class households to qualify.
For 2025, to qualify, your income must be at least 100% of the federal poverty level - $15,060 for a single adult or $31,200 for a family of four. Additionally, lawfully residing immigrants with incomes below the poverty line who are ineligible for Medicaid due to immigration status may also qualify. These savings directly reduce your healthcare costs.
Suitability for Individual Needs
Premium tax credits benefit those buying insurance through the Marketplace without access to affordable employer plans. To qualify, you must be a U.S. citizen or lawfully present immigrant and not eligible for Medicaid, Medicare, or similar programs.
In 2025, employer coverage is deemed affordable if self-only premiums are under 9.02% of household income. If costs exceed that, you may still qualify for Marketplace subsidies.
Ease of Implementation
Applying for premium tax credits is straightforward through the ACA Marketplace. You'll need to provide details on income, household size, tax filing status, and employer coverage.
Once approved, you can use the credit in two ways:
Advance Payments (APTC): Sent monthly to your insurer to lower premiums
Year-End Credit: Pay full premiums upfront and claim the credit when filing taxes
Impact on Coverage and Benefits
The type of plan you choose matters, too. Gold and platinum plans often have higher premiums than the silver benchmark plan, meaning you might pay more than your expected contribution. On the other hand, bronze plans typically cost less but come with higher out-of-pocket expenses. If you qualify for cost-sharing reductions, choosing a silver plan can maximize your savings by lowering deductibles, copays, and coinsurance.
5. Match Coverage to Your Needs
Choosing health insurance that fits your specific needs can help trim unnecessary expenses. After comparing plans and considering strategies like HDHPs, aligning your coverage with your actual requirements ensures you're only paying for what you truly need.
Cost Savings Potential
Customizing your coverage can make a big difference in your healthcare spending. In fact, 65% of employees appreciate the ability to choose their own benefits, and this flexibility often translates into financial savings. By focusing on the services you use most, you can get the best value for your money.
Suitability for Individual Needs
Your health plan should match your life stage, health status, and family setup. Consider how often you visit the doctor, your medication needs, and any expected treatments or surgeries. Needs vary - for example, a healthy single adult differs from a family of four or someone nearing retirement. If major health changes are ahead, factor those in. Create a list of your key providers and medications (including generic vs. brand-name) to help you choose the most cost-effective plan that meets your needs.
Ease of Implementation
Customizing your coverage takes some effort but can lead to big savings. Start by reviewing your past healthcare use to predict future needs.
Use tools like the Health Insurance Marketplace Calculator to estimate premiums, subsidies, and eligibility based on income, age, and family size. It also helps compare bronze vs. silver plan costs in your area.
Don’t assume everything is covered - check directly with insurers. Confirm medication coverage and whether your doctors are in-network. Use provider directories and prepare questions before calling to ensure you get clear answers.
Impact on Coverage and Benefits
Aligning coverage with your needs helps you spend more efficiently on healthcare. Focus on services you’re likely to use - like mental health care, physical therapy, or fertility treatments - and check if your prescriptions are covered in the plan’s drug formulary.
Know the differences: HMO plans are lower-cost but restrict you to in-network providers, while PPOs offer more flexibility at a higher price.
Reassess your plan regularly to keep pace with changing needs and budget. This proactive approach ensures you get the most value while managing premium costs wisely.
6. Consider Catastrophic Coverage Options
If you're looking to cut monthly healthcare costs while still maintaining emergency coverage, catastrophic health insurance plans might be worth exploring. These plans are designed to shield you from overwhelming medical bills in the event of a severe illness or injury, all while keeping your monthly premiums low. They also include essential preventive care, which can be a bonus for those seeking basic coverage without breaking the bank.
Cost Savings Potential
Catastrophic plans offer low premiums - around $260/month in 2024 for a 27-year-old - but come with a high deductible of $9,200 for individuals in 2025. You’ll pay most medical costs out of pocket until that threshold is met. Still, they include some benefits: free preventive care and three primary care visits per year before hitting the deductible.
Suitability for Individual Needs
Catastrophic plans suit young, healthy individuals under 30 or those with a hardship exemption (e.g., homelessness, bankruptcy, domestic violence). However, they’re not subsidy-eligible. Since 92% of ACA enrollees received tax credits in 2025, a bronze or silver plan may be more cost-effective if you qualify for those subsidies. Be sure to compare options carefully.
Ease of Implementation
You can purchase catastrophic plans both through the Health Insurance Marketplace and outside of it. To determine if this type of plan makes sense for you, compare it to bronze and silver options to see which offers the best value for your situation. If you're over 30, you'll need to verify your eligibility for a hardship or affordability exemption to enroll.
Impact on Coverage and Benefits
Catastrophic plans cover essential services but require you to pay most costs until meeting the $9,200 deductible. This high out-of-pocket burden likely contributes to low enrollment - just 54,109 enrollees in 2025 versus over 24 million total ACA sign-ups.
7. Accept Higher Cost Sharing (Copays and Coinsurance)
Choosing to pay higher out-of-pocket costs, like copays and coinsurance, can lower your monthly premiums. This trade-off means you pay less upfront each month but more when you use healthcare services - a strategy that can work well for certain individuals.
Cost Savings Potential
Choosing higher out-of-pocket costs - like increased copays or coinsurance - can lower your monthly premiums by reducing the insurer’s risk.
In 2024, average copays were $26 for primary care and $42 for specialists, with 20% coinsurance. Plans with higher cost-sharing typically offer much lower premiums.
Even with higher expenses, there’s a safety net: 2025 marketplace plans cap out-of-pocket costs at $9,200 for individuals and $18,400 for families, limiting your financial exposure.
Suitability for Individual Needs
Higher cost-sharing plans suit those who rarely need medical care and want lower monthly costs. If you're generally healthy and visit the doctor only for routine checkups or minor issues, this option can be cost-effective. Before choosing, assess your expected healthcare use. A Forbes survey found nearly 56% of people find health insurance confusing - making self-evaluation essential to ensure this strategy fits your needs.
Ease of Implementation
Adopting this strategy is simple. During your enrollment period, compare plans with varying cost-sharing structures. Review the summary of benefits to understand key details like deductibles, copays, and coinsurance.
When comparing plans, calculate your potential annual costs under different scenarios - minimal care, moderate care, or high medical usage. This analysis will help you see how increased cost sharing impacts your overall healthcare expenses.
Impact on Coverage and Benefits
Even with higher cost-sharing, these plans still cover the same essential health benefits as lower cost-sharing options. However, they change how you pay for care, requiring more out-of-pocket spending each time you visit a provider.
This structure encourages more deliberate healthcare decisions but may also discourage necessary care if costs feel overwhelming.
8. Stay Healthy and Use Preventive Care
Taking care of your health and making use of preventive care ties in perfectly with earlier tips about choosing the right plan and managing costs. By focusing on prevention, you can avoid expensive treatments down the road, saving money and reducing the overall strain on the healthcare system.
Cost Savings Potential
Preventive care isn't just good for your health - it can save you money. According to the American Medical Association, preventive care helps catch serious illnesses early, when treatments are more effective and less expensive, ultimately reducing overall healthcare costs.
Take flu shots, for example. For older adults, these vaccines can significantly cut healthcare expenses. Research shows that every dollar spent on immunizations can result in notable savings. During the 2019–2020 flu season alone, flu vaccinations prevented an estimated 100,000 hospital visits in the U.S..
Lifestyle choices also play a big role in healthcare costs. Smokers, for instance, may face insurance premiums up to 50% higher than non-smokers. On the flip side, regular exercise, a balanced diet, and limiting alcohol intake can reduce the risk of chronic diseases.
Ease of Implementation
Incorporating preventive care into your routine is straightforward, especially since most health plans cover these services at no cost under the Affordable Care Act. In 2020, about 151.6 million people were enrolled in private insurance plans offering preventive services without deductibles, copayments, or coinsurance.
Start by talking to your healthcare provider to determine which preventive services are right for you based on your age, sex, and health status. Make annual wellness visits a habit and stay on top of screenings for conditions like breast, cervical, and colorectal cancer.
To avoid unexpected charges, use in-network providers and double-check your health plan details to confirm which preventive services are fully covered. Keep in mind that if your visit includes non-preventive care, you might still face some out-of-pocket costs.
Impact on Coverage and Benefits
When preventive services are free, people are more likely to use them - leading to earlier diagnoses and better outcomes. Still, Americans only use about half the recommended preventive care.
Preventive care guidelines come from trusted organizations like the U.S. Preventive Services Task Force and the Advisory Committee on Immunization Practices. These services include screenings for depression, diabetes, obesity, various cancers, and sexually transmitted infections (STIs), as well as routine immunizations and specialized care for women and children.
Preventive care lowers long-term costs by catching issues early. Even small fees - as little as $1 to $5 - can discourage use, making no-cost access essential.
As the Centers for Medicare & Medicaid Services notes, quality preventive care helps people stay healthy, avoid disease, and reduce expenses. Using these services and building healthy habits can cut healthcare costs and possibly lower your premiums.
9. Join Group or Association Plans
Group and association health plans can be a smart way to lower your insurance premiums. By pooling members together, these plans use collective buying power to negotiate better rates and broader coverage. Instead of going it alone, you benefit from the cost advantages of being part of a larger group.
Cost Savings Potential
According to Investopedia, “The cost of group health insurance is usually much lower than individual plans because the risk is spread across a higher number of people.” Insurers can offer reduced premiums because they’re covering a larger pool of people. This is especially helpful for small business owners, as a survey by the National Federation of Independent Business revealed that 52% of them see health insurance costs as a major challenge. By joining larger groups, associations can access plans with lower administrative costs, which translates to savings.
Options for Different Needs
Group health plans are often available through professional organizations like the AMA, ABA, NEA, and National Restaurant Association. Self-employed individuals and gig workers can explore options through groups like the Freelancers Union, while AARP serves retirees and community-minded members. About 31% of people in individual market plans are self-employed - underscoring the value of group coverage. Just note that while these plans may offer lower premiums, they might also come with fewer benefits or more flexible rating structures.
How to Get Started
Once you’ve identified a group plan that fits your needs, getting started is fairly simple. You can reach out to an insurance broker or sales representative to explore available options. Many associations already promote affordable health coverage for their members, and consulting with a benefits advisor can help you pinpoint the right plan. If you’re an employer, gathering feedback from your employees about their healthcare needs can guide your selection process.
Balancing Cost and Coverage
Group plans can lower costs but may offer less flexibility and coverage. Since eligibility depends on your job or membership, leaving the group could mean losing coverage. Some Association Health Plans (AHPs) may skip certain ACA-required benefits, trading lower premiums for fewer protections. Still, large group plans often negotiate better rates and may self-insure to reduce costs. Be sure to review the plan carefully to ensure it fits your healthcare needs.
10. Review and Update Your Plan Each Year
Health insurance isn’t a “set it and forget it” kind of thing. Your needs evolve over time, which is why it’s so important to revisit your plan annually. Major life changes - like getting married, switching jobs, or dealing with new health conditions - can shift what you need from your coverage. What worked last year might no longer be the best fit, and taking the time to reassess can lead to savings and better benefits.
Saving Money by Reviewing Your Plan
A yearly review can uncover savings by aligning your plan with current needs. While 86% feel confident in their coverage, many don’t fully understand it—leading to unnecessary costs or missed opportunities.
"Reviewing your policies at the start of the year is a smart way to ensure you're adequately covered without paying for unnecessary coverage."
– Charles Castro, SVP, David Lerner Associates
Plans and rates change annually. Reviewing last year’s usage helps you spot better options and avoid overpaying.
Tailoring Coverage to Your Current Lifestyle
Your insurance should reflect your current needs, not last year’s. Life events like marriage, childbirth, or a new job may change your coverage needs - and could qualify you for a Special Enrollment Period.
When reviewing your plan, focus on what matters most: services you use often, total costs, prescription coverage, provider satisfaction, and overall experience. Regular reviews help ensure your plan fits your life now - not what it used to be.
How to Approach the Review Process
The good news? Reviewing your plan isn’t as complicated as it might seem. Open Enrollment, which usually runs from November 1 to December 15, is the perfect time to make adjustments. Start by gathering last year’s bills and usage details to evaluate your premiums, deductibles, co-pays, and out-of-pocket limits.
Next, compare your current plan to other available options. Look at the costs, coverage details, and network of providers. If you’re unsure about anything, don’t hesitate to consult an insurance advisor for guidance.
Making Informed Choices
Saving on health insurance doesn’t mean giving up quality coverage. This article outlined ten strategies - from comparing plans to using HSAs - that can help you cut costs while protecting your health and finances.
Finding the right balance is key. For example, raising your deductible could cut premiums by up to 50%, but it’s only smart if you can handle the out-of-pocket risk.
As life changes - marriage, kids, new job - your insurance needs shift too. Reviewing your plan annually keeps it aligned.
With rising healthcare premiums, even small savings can make a big difference over time.
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Using a Health Savings Account (HSA) alongside a high-deductible health plan comes with three key tax benefits in the U.S.:
Tax-deductible contributions: The money you contribute lowers your taxable income for the year, which can reduce how much you owe in taxes.
Tax-free growth: Any interest or investment earnings within the HSA aren’t subject to taxes, allowing your savings to grow over time.
Tax-free withdrawals: When you use the funds for qualified medical expenses, you won’t pay taxes on those withdrawals, easing the financial burden of healthcare costs.
These advantages make HSAs an effective way to manage healthcare expenses while cutting down on taxes.
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If your household income is between 100% and 400% of the federal poverty level (FPL) and you buy your insurance through the Health Insurance Marketplace, you might qualify for premium tax credits or subsidies. To be eligible, you also need to be a U.S. citizen or have legal status in the country.
When applying for coverage through the Marketplace, you'll need to consider your household income, family size, and other details to determine if you qualify. These credits aim to lower the cost of health insurance while ensuring access to essential benefits.
