How to Buy Health Insurance: 7 Ways to Get Coverage
If you don't get health insurance from your job, shopping on HealthCare.gov is one of the best ways to get coverage.
Find Cheap Health Insurance Quotes in Your Area
Getting coverage from your job, called "group insurance," is the easiest and most common way to get health insurance. If you can't get a plan from your job, HealthCare.gov and state marketplace sites sell plans that have good coverage and often come with discounts. And you might be able to get coverage through government programs like Medicare or Medicaid, if you qualify.
7 ways to get health insurance
How you get health insurance ultimately depends on your situation.
For example, if your job offers health insurance, that's usually the best and most affordable option. If you have a low income, Medicaid is the best option. If you're a senior, you should get on Medicare. And if you're self-employed, choose a marketplace plan, which is often called "Obamacare."
Get health insurance through a job
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Easiest way to get health insurance
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Costs less, usually because your employer pays part of it
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Your choices are limited to what your company offers
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Plan options are set by your employer
A group health insurance plan — the type you get through your job — usually gives you the best deal on coverage.
Plans are typically only available to full-time employees. You can buy coverage just for yourself or for your whole family.
Usually, your company pays part of your monthly rate. That means the actual cost of coverage is much more than what comes out of your paycheck. That's also what makes group coverage such a good deal, because you only pay a portion of the total cost each month.
Cost of workplace health insurance
Workers pay | Employers pay | |
|---|---|---|
| Individual | $114 | $599 |
| Family | $525 | $1,574 |
Get insurance through the marketplace
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Wide variety of coverage options available
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Discounts available if you make less money
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All plans cover a wide range of medical needs
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You can only sign up during open enrollment or if you have a qualifying event (like moving or losing other coverage)
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The companies you can choose from depend on where you live
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Can be expensive if you don't qualify for discounts
When you shop on HealthCare.gov or your state marketplace, you can get private health insurance plans from companies like UnitedHealthcare, Ambetter and Blue Cross Blue Shield.
Marketplace plans have levels of coverage called metal tiers.
- Catastrophic plans have the cheapest rates but require you to pay for a large part of your medical bills yourself.
- Bronze plans are cheap and are good if you are young and don't expect to need much medical care.
- Silver plans are best for most people because they balance the cost of the plan with how much you pay for medical care.
- Gold plans are worth it if you need expensive medical care because the insurance plan will pay a larger share of your medical costs.
- Platinum plans have the highest rates but also pay for the biggest portion of your medical bills.
On average, a Silver plan costs $621 per month. However, most people who buy a marketplace plan get discounts, called subsidies, that lower the cost of health insurance. How much you save is based on your income.
Shoppers pay an average of $74 per month for health insurance after subsidies are applied, and you can estimate your costs using the subsidy calculator.
How to get Obamacare
You can get Obamacare by shopping on HealthCare.gov, which is the federal marketplace for health insurance. Depending on the state where you live, the website may send you to a health insurance marketplace that's run by your state.
Obamacare is another name for an Affordable Care Act (ACA) or marketplace health insurance plan.
Buy a plan directly from an insurance company or broker
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You can sometimes get coverage even if it's not open enrollment
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Brokers can help you pick the best plan for you
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You won't get discounts to lower your monthly cost
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Plans might not always have the same level of coverage as plans from the marketplace
Brokers and agents are insurance professionals that can help you figure out what plans are best for you. But brokers and insurance companies can't give you the same rate discounts you can get on the marketplace. Make sure to check if you can get subsidies before you decide to work with a broker. If you can get the discounts, it's better to get a plan on HealthCare.gov or your state marketplace.
Look for plans that include what's called minimum essential coverage. That ensures you'll have good health benefits, including coverage for preexisting conditions, and make sure that your current health won't limit your coverage. Brokers often sell a range of plans, including things like short-term health insurance that doesn't have to give you the same level of coverage as a marketplace plan.
Get Medicare
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Wide range of plans to choose from
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Affordable rates
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Seniors and people with a disability or medical condition are eligible
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Can be difficult to navigate all of the rules
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Usually have to wait until age 65 to get coverage
Medicare is a government health insurance program for people over 65. You can also get Medicare if you have a qualifying disability or medical condition, even if you're younger.
Medicare tends to be much cheaper than buying a health insurance plan on the marketplace. Part A is free for most people, and Part B costs $185 per month in 2025. Medicare Advantage, Part D and Medigap plans all have their own rates that you pay on top of the rate for Part B.
Medicare is made up of several different parts.
- Medicare Part A comes from the federal government and covers hospital costs. Part A is half of what's called "Original Medicare."
- Medicare Part B also comes from the government, and it pays for doctor visits and non-hospital medical care. It's the second half of Original Medicare.
- Medicare Part C is also called Medicare Advantage. These plans come from insurance companies, and they bundle Parts A and B together with extra benefits, like dental and vision coverage.
- Medicare Part D pays for prescription medications. You can only have a Part D plan if you have Original Medicare; you can't get it with Medicare Advantage, because most of those plans already cover prescriptions. Part D comes from private insurance companies.
There's also Medicare Supplement plans, also called Medigap plans, which help you cover some of the things that Original Medicare doesn't pay for.
Get Medicaid
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Monthly rate for coverage is usually low or free
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What you pay for medical care is cheap and often free
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You must have a low income or other criteria to qualify
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Income limits depend on where you live
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Coverage varies by state
Medicaid is a health insurance program for people with low incomes. The coverage comes from both the federal government and your state government. If you qualify, you can get free or very affordable health insurance coverage.
In most states, you're eligible for Medicaid if you're single and earn less than $21,597. A family of four can usually qualify for Medicaid with a household income of less than $44,367. Children, pregnant women and people with disabilities can often make more and still get Medicaid.
Get health insurance through a membership organization
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Rates are usually discounted with a group insurance plan
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Organizations, unions and clubs sometimes negotiate to get benefits that are most useful for their members
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You'll usually have to pay membership dues plus the cost of insurance
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You can't get monthly government subsidies
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Can be hard to get
Professional organizations and alumni associations might offer group health insurance options for their members. This means you can get lower rates, which are typically only available through an employer's group health insurance plan.
It's important to compare costs to see if an organization's plan is the best deal. For example, health insurance through an industry group could cost $300 per month. But that may not be a good deal if you can get coverage through the marketplace for $100 per month, after income-based subsidies are applied.
Get short-term health insurance
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Best for when you have a coverage gap before another type of health insurance plan begins
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Can be cheap
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Coverage begins immediately and can be purchased anytime
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How much you pay for a plan is based on your health and age
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Some plans might not have good coverage
Short-term health insurance can be a good option if you need coverage quickly and for a few months or less. You'll usually have to answer questions about your medical history before you can enroll, and a company can decline to sell you a plan if you have health issues.
The best short-term health insurance companies, such as UnitedHealthcare, will have options for good coverage at a reasonable cost. Watch out for short-term plans that have catastrophic-style coverage and won't start paying for your medical care until after you've spent $10,000 to meet a deductible.
Plus, short-term health insurance plans frequently have coverage restrictions. This means they may not cover preexisting conditions, cancer or prescription drugs. Short-term health insurance can still be a good option for small periods of time, but make sure you're aware of what's covered and what isn't.
How to avoid health insurance mistakes and scams
Health insurance can be complex, which makes it easier for scammers to present you with info that looks real but ultimately isn't. If you're shopping for a plan, keep an eye out for some common pitfalls.
- Medical discount plans: These cheap plans are advertised as a way to lower your medical costs. But they're more like a coupon than an actual insurance plan. The Federal Trade Commission says to watch out for warning signs, like if the company won't put anything in writing.
- Health-sharing agreements: With a health-sharing agreement, sometimes called a health-sharing ministry, you pay a monthly fee and your money is pooled with other people in the agreement. When someone has medical bills, the agreement may chip in to help pay. However, there's no guarantee that your medical bills will get paid, which could leave you spending months fighting for coverage or facing thousands of dollars in debt.
- Health insurance scams: Many scammers will take advantage of people shopping for health insurance. Common scams include asking you to pay for a health insurance quote or asking you for personal information like your Social Security number.
How much does private health insurance cost?
Health insurance costs $621 per month, on average, for a Silver plan.
Find Cheap Health Insurance Quotes in Your Area
Monthly rates by metal tier
Plan type | Monthly cost |
|---|---|
| Catastrophic | $361 |
| Bronze | $488 |
| Silver | $621 |
| Gold | $676 |
| Platinum | $913 |
Average rates are for a 40-year-old buying an ACA marketplace plan.
Several things affect how much you pay each month for a health insurance plan.
- Health insurance subsidies lower the cost of a plan so you won't spend more than 8.5% of your income on health insurance. Rates are scaled based on how much you earn, and if you have a lower income, you could pay rates lower than $10 per month.
- Your age affects the cost of health insurance in most states. Rates for young adults are lower because young people generally need less medical care. After age 40, health insurance rates increase steadily.
- Where you live affects how much health insurance costs. For example, the average cost of health insurance in Virginia is $421 per month, and the average cost in Vermont is $1,157 per month.
- The company you choose also affects how much you pay for health insurance. Some cheaper companies may have plans with more restrictions or have poor ratings. More expensive companies sometimes offer extra perks or a wider selection of doctors.
Frequently asked questions
How do I get health insurance for the first time?
Most people get their health insurance through their jobs. If you don't have a job or your employer doesn't offer health insurance, you can buy a plan on HealthCare.gov or your state's health insurance marketplace. You might be able to get Medicaid if you have a low income.
When can I get health insurance?
If you get health insurance from your job, your coverage will probably start within a month or two of your first day, although every company is different. If you need to buy your own plan, you usually have to shop between Nov. 1 and Jan. 15, during what's called "open enrollment." However, if you've recently moved, gotten married, had a baby or lost your job, you can get health insurance outside of open enrollment.
Is $200 a month a lot for health insurance?
$200 per month for health insurance is usually a pretty good deal. Most plans from the marketplace cost between $361 and $913 per month, depending on the plan you buy. However, if you get your health insurance from work, $200 is on the high end. Employees pay an average of $114 per month for health insurance through work.
Methodology
Rates for employer health insurance are from a KFF survey of employers and their health insurance coverage.
Rates for private health insurance plans come from public use files (PUFs) on the Centers for Medicare & Medicaid Services (CMS) government website and state health insurance marketplaces. Unless otherwise noted, average costs are for a 40-year-old buying a Silver plan.
The cost for plans with subsidies is from CMS data, and includes everyone who got health insurance during 2024 open enrollment and was eligible for advanced premium tax credits.
About the Author
Insurance Writer
Cate Deventer is a ValuePenguin writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
