Best Cheap Health Insurance for Young Adults
Blue Cross Blue Shield has the best health insurance for young adults because it’s easy to use.
Find Cheap Health Insurance Quotes in Your Area
Best Health Insurance for Young Adults
Kaiser Permanente offers the cheapest health insurance for young adults. And Oscar has the best mobile app, if you prefer to handle your health insurance digitally.
You can stay on your parents' health insurance plan until you are 26. But if you need to get your own coverage before then, these companies are a good place to start.
ValuePenguin's health insurance experts reviewed average health insurance rates for a 21-year-old with a Bronze plan. Because young adults typically have fewer health care needs than older adults, a Bronze plan is a good choice because it's cheaper than higher plan tiers. We also analyzed coverage and customer service ratings.
Our experts also considered the size of each company's doctor network. Because young adults may be traveling for school and work, it's important for plans to be widely accepted. Finally, we reviewed the mobile tools for each company to see how easy it was to access plan information digitally.
Best and cheapest health insurance for young adults
Blue Cross Blue Shield, Kaiser Permanente and Oscar are the best health insurance companies for young adults.
A Bronze plan costs an average of $388 per month for a 21-year-old. Bronze plans are a good option for most young adults. These plans have cheaper monthly rates than other plan tiers, but they require you to pay for more of your medical care yourself.
Younger people tend to be healthier overall, so picking a Bronze plan can help you save overall. Just make sure you have savings to pay for your share of your medical bills.
Find Cheap Health Insurance in Your Area
Keep in mind that most young adults don't pay full price for health insurance. If you get coverage through your job or from your parents' plan, your rate will likely be lower than if you buy coverage on your own. And even if you have to buy your own policy, you might be able to get a discount on your rate based on how much money you make.
Cheap medical insurance for young adults
Health insurance company | Editor's rating | Monthly cost | |
|---|---|---|---|
| Kaiser Permanente | $315 | |
| Ambetter | $344 | |
| Molina | $355 | |
| Oscar | $364 | |
| UnitedHealthcare | $379 | |
Average monthly cost for a 21-year-old with a Bronze plan.
The needs of young adults vary, so the best health insurance for you will depend on your unique situation.
If you are managing a chronic condition, for example, you might want to go with a higher-tier plan, like Gold or Platinum, so that you don't have to pay as much toward your medical bills.
Best health insurance for young adults overall: Blue Cross Blue Shield
-
Editor's rating
- Cost: $382/month
Blue Cross Blue Shield lets you see most doctors and go to most hospitals.
Pros:
-
Most doctors take BCBS
-
Typically has good service
-
Some BCBS companies have student health insurance
Cons:
-
Not the cheapest rates
-
Bronze plans aren't available in New Mexico
Blue Cross Blue Shield has the best health insurance for most people under 26.
The company makes it easy to find covered medical care because of its large provider network. More than 90% of the doctors and hospitals in the United States accept Blue Cross Blue Shield health insurance. This means that, no matter where you are, there's probably a medical office near you that you can go to for covered medical care.
Young people often travel for school, new jobs or trips with friends. A large health insurance network means you won't have to pay the higher costs for going to an out-of-network doctor when you're away from home.
Blue Cross Blue Shield can also be a good choice if you're a college student. Many Blue Cross Blue Shield companies work with universities to provide student health insurance. For example, Anthem Blue Cross Blue Shield has a program called Student Advantage. The program focuses on flexibility, considering that students' schedules can be hectic. Student Advantage policies come with a 24/7 nurse line, virtual medical appointments and virtual mental health visits.
At $382 per month, Blue Cross Blue Shield's average rate for young adults isn't the lowest around, but it's still lower than the national average of $388. It's a great option, but if you're on a tight budget, you may want to consider other companies.
Additionally, Blue Cross Blue Shield is made up of independently owned companies. Each company has different programs and plans, so the options available in your area might be different. Blue Cross Blue Shield has subsidiaries nationwide, but you can't buy a Bronze plan in New Mexico.
Blue Cross Blue Shield sells Bronze plans in every state except New Mexico. You can still get BCBS in New Mexico, but you'll have to buy a Silver or Gold plan.
Most affordable health insurance for young adults: Kaiser Permanente
-
Editor's rating
- Cost: $315/month
Kaiser Permanente has cheap rates and excellent customer service.
Pros:
-
Cheap rates
-
Excellent service
-
Educational resources for young adults
Cons:
-
Only in eight states and Washington, D.C.
-
Requires you to use Kaiser doctors and hopsitals
Kaiser Permanente has the best health insurance for young adults on a budget.
The company's average monthly rate is $73 cheaper each month compared to the national average for a 21-year-old with a Bronze plan. Kaiser Permanente also has high customer satisfaction ratings, which can be helpful for young adults who aren't used to navigating health insurance yet.
Kaiser Permanente operates its own hospitals and medical offices. This can make the billing process easier since Kaiser Permanente's health insurance plans sync directly with the medical offices.
Unfortunately, it also means that most of Kaiser Permanente's plans have no coverage for out-of-network medical care except in emergencies. If you go to a doctor's office that isn't in Kaiser Permanente's network, you'll have to pay for the full cost of your care.
Along with cheap health insurance rates, Kaiser Permanente also has helpful health information for young adults on its website. Topics include mental health, acne, healthy eating and insomnia. Kaiser Permanente even has resources to help you learn what annual appointments and tests you might need so you can learn how to manage your health.
Kaiser Permanente sells Bronze health insurance plans in eight states and Washington, D.C.
- California
- Colorado
- Georgia
- Hawaii
- Maryland
- Oregon
- Virginia
- Washington
- Washington, D.C.
Best health insurance app: Oscar
-
Editor's rating
- Cost: $364/month
Oscar has an excellent mobile app that makes managing your health insurance easy.
Pros:
-
Helpful mobile app
-
Cheap rates
-
Comes with a dedicated care team
Cons:
-
Poor customer service
-
Only in 18 states
Oscar has the best mobile health insurance app, which is great for young adults who want digital access to their health insurance.
The app is highly rated on the App Store and in Google Play and is one of the most robust apps in the industry. The app's search tool lets you find care based on location, doctor specialty and more. And virtual visits are free with most of Oscar's plans. The app also lets you review your plan benefits, look at lab results and pay bills.
Oscar's average monthly rate is also fairly low for a 21-year-old with a Bronze plan, so it could be a good option if you need cheap health insurance but can't get Kaiser Permanente. Oscar even has a long list of medications that only cost $3 per prescription, which can help keep the cost of your health care down.
Oscar was founded in 2012, so it's fairly new among health insurance companies. If you're more comfortable with a larger health insurance company, Oscar might not be the best fit. And Oscar's customer service isn't great, so if you want more guidance with your health insurance, you may want to shop around.
Oscar sells Bronze health insurance plans in 18 states.
Free health insurance for young adults under 26
Some of the best health insurance for adults under 26 is free or low cost.
If you have access to health insurance through your job, your employer will likely pay for part of your monthly rate. And if you have a low income, you might qualify for Medicaid, which is usually free. And if you do have to buy your own health insurance, you might get a lower rate because of your income.
Employer-sponsored health care
One of the cheapest insurance options for young adults is getting coverage through an employer's health plan. This is called group health insurance.
Employer-sponsored plans are often cheap because most employers pay a large share of your the monthly rate. Some might even cover the full cost of health insurance, although this is not as common as it used to be because health care costs are rising.
If you get employer coverage, your portion of the monthly rate is usually taken out of your paycheck. Employer-sponsored health care can also provide coverage for dependents, like a spouse or children. Your employer might not cover the cost to add dependents, though, which means you could have to pay their full monthly rate yourself.
Medicaid
Medicaid is another free or low-cost health insurance option, if you qualify. Eligibility for Medicaid usually depends on your income.
There are 10 states that haven't expanded Medicaid. In these states, you have to make very little to qualify, and you may have to meet other requirements, like having a disability or medical condition.
In most states, you can get Medicaid if your household income is at or below a certain level. If you're single, you can't make more than $21,597 per year. Usually the income limit is 138% of the federal poverty level, although Alaska and Hawaii have higher levels. In these states, you can make more and still qualify.
Medicaid is usually free, but each state has different rules. Even if there's no monthly fee, you might have a copay to visit a doctor. Usually, though, Medicaid pays for your health care without any cost to you.
Marketplace plans
If you need to buy a health insurance policy, you can get coverage from the federal marketplace or your state marketplace website. Marketplace plans are sometimes called Affordable Care Act (ACA) policies or "Obamacare" policies.
Bronze plans are a good choice for healthy young adults and those who are on tight budgets. Silver plans cost more but also give you more coverage. They could be better suited for young couples or young adults with children. If you can afford to pay more per month, a Gold or Platinum policy could be a good choice. With these plans, you'll pay the lowest amount for medical care.
There are five different plan levels, called tiers: Catastrophic, Bronze, Silver, Gold and Platinum. The best plan tier will depend on your income and how healthy you are. The lower your tier, the less you'll pay monthly, but the more you'll pay when you go to the doctor.
If you buy a Bronze, Silver, Gold or Platinum health insurance plan, you might qualify for a tax credit that lowers your monthly rate.
Tax credits, also called rate subsidies, lower the monthly cost of your health insurance policy. The discount you get depends on how many people are in your household and how much money you make. If you're single, for example, you can make up to $60,240 and get a discount.
Even if you don't qualify for subsidies, the marketplace can help you compare different health insurance companies and plans. You can buy private health insurance directly from an insurance company, but using a marketplace or comparison website makes it easier to see all your choices at once.
Usually, you can only buy marketplace policies between Nov. 1 and Jan. 15. This time period is called the open enrollment period. You might be able to buy a policy outside of this time frame if you qualify for a special enrollment period. If you're turning 26 and falling off of your parents' plan, you'll qualify for special enrollment.
Average cost of health insurance for young adults
A Bronze health insurance plan costs $388 per month for a 21-year-old, on average.
Rates change based on the level of coverage you choose. Catastrophic and Bronze plans are cheaper, but they also pay less for your medical care. That means you'll pay more if you need to see the doctor. Higher-tier plans like Gold and Platinum cost more each month but save you money when you go to the doctor.
Find Cheap Health Insurance in Your Area
If you're generally healthy and don't need much medical care, a Bronze plan is a good choice. If you have health issues or expect to have a large medical bill in the near future, it might make more sense to get a Gold or Platinum plan.
Catastrophic plans are the cheapest but they require you to pay a very large share of your medical bills. They're usually not a good choice unless you can't afford anything else.
Cost of health insurance for young adults by plan tier
Plan tier | Monthly rate |
|---|---|
| Catastrophic | $279 |
| Bronze | $388 |
| Silver | $494 |
| Gold | $538 |
| Platinum | $743 |
Rates are for a 21-year-old.
Because young adults tend to be relatively healthy, costs don't vary much by age. Rates increase as you get older, but typically you won't see much of an increase in your young adult years.
Cost of health insurance for young adults under 26
Age | Monthly rate |
|---|---|
| 18 | $354 |
| 19 | $365 |
| 20 | $376 |
| 21 | $388 |
| 22 | $388 |
Rates are for a Bronze plan.
Alternative young adult health insurance
If you do not have coverage through an employer, can't get Medicaid and can't afford to buy your own plan, you still have options for health insurance.
A student health plan or a short-term health insurance policy could be helpful. And if you're under 26, you may be able to stay on your parents' health insurance.
Student health insurance
If you're in college, buying a student health insurance plan could be a good option. Typically, your college or school would offer you a health insurance plan when you enroll. You might consider this option if you are currently on your parents' plan and there aren't any in-network doctors near your school.
For example, if you live in Michigan but you are going to college in Florida, your parents' health insurance plan might not cover doctors near your school.
Make sure to talk to your school about what is covered by your student health plan. Not all student health plans are required to cover the essential health benefits that other health plans cover. Knowing what your policy does and doesn't cover could help you avoid surprise bills.
Short-term health insurance
Another option is short-term health insurance. These plans don't provide the same level of benefits as marketplace insurance or private insurance policies. However, short-term health insurance can provide affordable health insurance for young adults with tight budgets and fewer health care needs.
You probably shouldn't buy a short-term plan if you have medical conditions that require frequent or complex health care. And unlike traditional health insurance policies, short-term health insurance companies can deny you coverage if you have preexisting health conditions like diabetes or asthma.
Staying on a family plan
Young adults under age 26 can stay on a parent’s health insurance policy. This is usually one of the cheapest health insurance options for young adults.
If your parents have an ACA marketplace plan, you can compare the price to stay on the family health insurance to the price to buy your own policy to see which option is cheaper.
You can stay on your parents' plan even if you:
- Are married
- Are not living with your parents
- Are going to school
- Are financially independent from your parents
- Have access to an employer-sponsored plan
- Have a child
In some states, you may be able to stay on your parents' plan even after you turn 26, if you meet other requirements.
Frequently asked questions
What's the best health insurance for young adults under 26?
Blue Cross Blue Shield has the best health insurance for young adults under 26 because its large provider network makes it easy to get medical care no matter where you are. Kaiser Permanente is a good option for cheap rates, and Oscar has the best health insurance app.
What is the most affordable health insurance for young adults?
If you can stay on your parents' health insurance, that's usually the cheapest health insurance for young adults. This is especially true if your parent has insurance through their job. If you need to buy your own policy, Kaiser Permanente has the cheapest health insurance rate for a 21-year-old with a Bronze plan, at $315 per month. You may find a cheaper company based on where you live, your age and the kind of coverage you need.
Is health insurance worth it in your 20s?
Health insurance is important to your physical and financial health, even if you're young. You might not have serious health issues in your 20s, but accidents can still happen. Health insurance helps you afford the medical care you need.
Methodology and sources
ValuePenguin used data from the Centers for Medicare & Medicaid Services (CMS) public use files (PUFs) and from state-run marketplace sites to calculate average health insurance costs for 21-year-olds with a Bronze plan. Rates for 18-year-olds through 25-year-olds were calculated using the age curve variations from CMS.
Other sources for this article include Blue Cross Blue Shield, HealthCare.gov, Kaiser Permanente, Oscar and the U.S. Department of Health and Human Services.
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.