This analysis examines how premiums for individual health insurance differ
around the nation, finding that premiums can vary substantially from state to
state. The average per-person premium in 2010 ranged in cost from approximately $136 per month in Alabama to more than $400 per month in Vermont and Massachusetts. The average across all states was $215 per member per
month.
Given the fragmentation of the market and the lack of public data
available about individual insurance premiums across the nation, the analysis
provides an important baseline that consumers and policymakers can use to gauge
the state of insurance affordability prior to the full implementation of health
reform. Some states such as Vermont and Massachusetts already instituted
insurance market reforms that enable people with pre-existing conditions to
purchase coverage, resulting in higher average premiums. Other states permit
insurers to exclude people with expensive illnesses, so average premiums reflect
a healthier-than-average population. Starting in 2014, the national health
reform law will prohibit insurers in all states from charging more to people
with pre-existing conditions.
Issue Brief (.pdf)
Chart: Average Per Person Monthly Premiums in the Individual Market, 2010
