How Much Does an Obamacare Plan Cost?

How Much Does an Obamacare Plan Cost?

Since the onset of the COVID-19 pandemic, many of us have been more aware of the costs of healthcare. On average, a hospital stay will cost you nearly $12,000, and a stay for COVID-19 could cost between $51,000 and $78,000. Those figures can ruin your life, especially if you don’t have health insurance.

Obamacare has made health insurance much more accessible for millions of Americans. Read on to learn more about your Obamacare plan cost and what goes into calculating that figure.

What Is Obamacare?

Before we get into all the different factors that can impact your Obamacare cost, let’s talk some about what Obamacare is. This is the more familiar term for a health insurance plan purchased under the Affordable Care Act. The ACA was passed in 2010 and granted affordable health insurance to millions of Americans.

Recently, the ACA has expanded and now offers tax credits and other discounts to enrollees. About 31 million Americans have insurance through Obamacare, and that number is expected to grow during the next period of open enrollment. Open enrollment this year will begin on November 1 and continue through the beginning of the year.


One of the first things that will have an impact on your cost of an Obamacare plan is your age. As you might expect, insurance companies charge higher premiums for people who are more likely to need medical services – in other words, older people. Younger people will generally pay less in premiums than older adults.

However, there are some regulations that keep insurance companies from charging older adults too much for their premiums. Age-based premiums can’t be more than three times higher for older adults than for younger. And no matter your age, if you use tobacco, you’re looking at higher premiums.


The area where you live can also have a significant impact on how much you’ll pay for health insurance. In part, this is due to the average cost of living in each state. In California, the cost of living is nearly 50 percent higher than the national average, while in Alabama, it’s just 82 percent of the national average.

State regulations can also change how much you pay for your health insurance through Obamacare. And the amount of competition among insurance companies in your area can play a role in how much you pay. States with less competition may have higher premiums since there’s less motivation to keep prices low.

Type of Plan

Even within the umbrella of the Affordable Care Act, there are different plans you can sign up for that come at different prices.

The ACA uses a metals system to designate which plans offer more and less coverage and so are more and less expensive. You can choose among Catastrophic, Bronze, Silver, Gold, and Platinum. Bronze plans tend to have lower premiums and higher deductibles, while Platinum plans are the reverse.

Your premiums will also vary wildly depending on if you’re getting individual or group insurance. If you need insurance to cover your children, spouse, or other family members, you’ll pay higher premiums.


One of the biggest changes Obamacare made to health insurance was tying your health insurance costs to your income. Previously, healthcare came at a fixed price, no matter whether you made $25,000 a year or $25 million a year. This made it hard or impossible for low-income Americans who didn’t have employer-provided health insurance to get coverage.

Under Obamacare, your premiums are determined based on your income and the number of dependents in your household. While the plan costs themselves don’t go down, the government subsidizes your healthcare costs. This brings everyone’s relative healthcare costs to roughly the same level and makes healthcare much more accessible for all Americans.


ACA subsidies can reduce your monthly premium costs and make health insurance a much more realistic prospect for many people. In some cases, these subsidies could reduce your premiums to less than $10 a month, depending on your income. Some people even pay nothing in premiums, although they may still have a deductible to contend with.

It is important to note that oftentimes, these subsidies take the form of tax waivers. While this does still save you money at the end of the day, your month-to-month costs might remain the same. Be sure to plan for this when you’re enrolling for health insurance, and talk to an expert if there’s any confusion.

Total Health Costs

It’s important to remember when you’re looking at your premium costs that this is just a portion of your overall health costs with Obamacare. While these may be the most consistent expenses, you also need to consider your deductible when choosing a plan. If you can’t afford the $6,000 deductible that comes with some of these plans, the premiums you’re paying may not do you much good.

In addition to your premiums and deductible, you’ll likely have some additional out-of-pocket expenses. There may be procedures your healthcare plan doesn’t cover or that require a copay. Many plans also have coverage maximums, and after you exceed them, you’ll be paying for everything out of pocket again.

Learn More About Your Obamacare Plan Cost

Obamacare has given more than 31 million Americans the chance to get access to affordable health insurance. Your Obamacare plan cost will depend on a number of factors, including your age, where you live, what sort of plan you get, and more. Your income level can also get you subsidies on your premiums that can make your monthly costs much more manageable.

If you’d like to learn more about Obamacare plan costs, check out the rest of our site at Obamacare Plans. We can help you find the coverage you need for a price you can afford. Find Obamacare insurance today and get rates as low as $30 a month with top carriers and brokers.