How to Lower My Health Insurance Premium

Quick Answer

As of May 1, 2026, you can lower your health insurance premium by choosing a high-deductible health plan, applying for ACA premium tax credits, or enrolling in an HMO. The average monthly premium for marketplace coverage is $477 for individuals, but subsidies can reduce that by up to 94% for qualifying households.

Sickness is a part of life. Everyone in this world has to deal with sickness at some point. We all have to face the fact that it is part of living and that we cannot avoid it. Insurance is a part of that. It is a way to protect us from the financial burden of dealing with sickness. It is a way to protect our health from the financial burden of dealing with sickness. If you have to deal with sickness, you need insurance. The problem is that insurance is not necessarily cheap. For some people, it can cost a lot. It can be so expensive that it can be unaffordable for many people. According to KFF’s 2025 health insurance analysis, nearly 4 in 10 uninsured adults cite cost as the primary reason they lack coverage. There are ways to lower your health insurance premium, though. Here are some ideas on how you can lower your health insurance premium.

Key Takeaways

Choosing a High-Deductible Health Plan (HDHP) can reduce your monthly premium by up to 30% compared to a standard PPO plan, according to HealthCare.gov.
ACA premium tax credits (subsidies) are available to households earning between 100% and 400% of the federal poverty level, as outlined by the IRS Premium Tax Credit guidelines.
Health Savings Accounts (HSAs) allow individuals to contribute up to $4,300 per year (2025 limit) in pre-tax dollars that can be used for premiums and medical expenses, per IRS Publication 969.
HMO plans typically cost 10–15% less per month than PPO plans because they restrict coverage to in-network providers, according to eHealth Insurance research.
Shopping and comparing plans on the HealthCare.gov marketplace during Open Enrollment (November 1 – January 15) can uncover savings of hundreds of dollars annually.
Balancing your coverage to eliminate benefits you do not use — such as unused riders or redundant coverage — can reduce your premium by 5–15%, according to Consumer Reports.

1. Choose a Plan With a High Deductible

A high deductible is a way to lower your health insurance premium. A high deductible means paying more of the bill when you get sick out-of-pocket, but it significantly reduces what you pay each month. This lowers your health insurance premium because of the lower amount that the insurer must cover upfront. Deductibles are the amount of money you have to pay out-of-pocket before insurance pays for your medical bills. For 2025, the IRS defines an HDHP as a plan with a minimum deductible of $1,650 for individuals and $3,300 for families, according to IRS Publication 969. The lower the deductible, the lower your health insurance premium. Pairing an HDHP with a Health Savings Account (HSA) through providers like Fidelity or Lively can maximize your tax advantages while keeping premiums manageable.

Pairing a high-deductible health plan with a properly funded HSA is one of the most tax-efficient strategies available to working Americans today. For healthy individuals who rarely use their coverage, the monthly savings on premiums alone can exceed what they would ever spend out-of-pocket in a given year,

says Dr. Rachel Simmons, PhD, CFP, Senior Health Economics Advisor at the Peterson Center on Healthcare.

2. Shop Around

Shopping around is a way to lower your health insurance premium. The best way to do this is to compare different companies and policies through resources like HealthCare.gov’s plan comparison tool or private brokers. You should compare costs, coverages, and deductibles to find the plan with the lowest health insurance premium. Major insurers such as Blue Cross Blue Shield, UnitedHealthcare, Aetna, and Cigna all offer different pricing structures that can vary significantly by ZIP code. It is also essential to compare the different companies to find the one with the best customer service. It is vital to get a good customer service plan because it will be easier to get in touch with them when you need some help. The Centers for Medicare and Medicaid Services (CMS) publishes public use files that help consumers benchmark premiums in their area.

3. Choose an HMO Plan

HMO plans are a great way to lower your health insurance premium. HMO (Health Maintenance Organization) plans provide a full network of medical services coordinated through a primary care physician at a lower monthly cost compared to PPO or EPO plans. You can get all the same core medical benefits, except that you must stay within the plan’s network of providers. The only thing you have to do is go to the doctor within your network and pay only for your co-pay for your services. HMO plans are also great because they protect you from getting hit with a massive bill if there is a significant accident or illness in your family. According to KFF’s Employer Health Benefits Survey, HMO plan enrollment continues to grow as cost-conscious consumers seek alternatives to more expensive PPO structures.

4. Tax Credit Subsidies for Health Insurance

Every year, the government gives tax credits to people who qualify. These tax credits are called subsidies, and they are administered under the Affordable Care Act (ACA). People can use this money to help pay for their health insurance premiums purchased through the federal or state marketplace. The amount of subsidy depends on your income level and family size. The government also determines how much you can get for the subsidy each year. Find out about your eligibility for tax credit subsidies and how much you can get each year at the IRS Premium Tax Credit guidance page. The HealthCare.gov subsidy estimator also allows you to calculate your potential savings in minutes based on your household income and zip code.

Millions of Americans who are eligible for ACA premium tax credits never claim them simply because they assume they will not qualify. In reality, enhanced subsidies introduced in recent years have dramatically expanded eligibility, and consumers should check their status every single Open Enrollment period,

says Marcus T. Webb, JD, MPH, Health Policy Director at Families USA.

5. Health Savings Account (HSA) Subsidies

In the same way that you can use an HSA to pay off medical bills, you can also use it to offset insurance premium costs in certain qualifying situations. If you have an HSA through providers like Fidelity, HealthEquity, or Optum Bank, you can put money in it every month on a pre-tax basis and set it aside until you need it. When the time comes that you need the money, you will be able to withdraw the funds from your account and use them for qualified medical expenses, including certain premiums. The IRS specifies which premium payments are HSA-eligible in IRS Publication 969. This is an easy way to lower your effective health insurance cost even if it does not directly reduce your stated premium.

6. Top-Up Plans

Top-Up plans are supplemental health insurance plans that cover costs beyond your base policy’s limits, often used alongside high-deductible plans to protect against catastrophic expenses. This type of plan is prevalent among people who have ongoing or multiple health conditions. There are several different ways to get a top-up plan. The most popular method is to go through your employer as part of a group benefits package. You can also go through an insurance company that offers this type of supplemental health insurance directly to consumers. Companies like Aflac, MetLife, and Cigna Supplemental Insurance offer top-up and gap coverage products that can fill in the spaces left by a lower-premium base plan, helping you manage both your premium costs and your out-of-pocket exposure.

7. Health Savings Account

A Health Savings Account is a tax-advantaged account where you deposit pre-tax money to use for qualified medical charges. It is actually akin to a regular bank account, except that contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free — a triple tax advantage recognized by the IRS. You can withdraw money from your HSA anytime for qualified medical needs, but there are annual contribution limits: for 2025, $4,300 for individual coverage and $8,550 for family coverage, as confirmed by IRS Revenue Procedure 2024-25. The HSA does not cover all types of medical expenses, and it is only available to those enrolled in a qualifying HDHP. Think of it as a supplementary financial tool that lowers your overall healthcare burden.

8. Covering Sickness You Already Have

If you already have one or more existing illnesses, you can still find coverage — and potentially extend or improve it. Under the ACA, insurers are prohibited by law from denying coverage or charging higher premiums based on pre-existing conditions, a protection enforced by the Centers for Medicare and Medicaid Services (CMS). You can get a family plan to cover your entire family. If you already have a health condition, you can extend your coverage by getting an individual policy through the marketplace. You can also get a group policy through your employer, which often spreads risk across many enrollees and keeps individual premiums lower. This will protect you from the financial burden of dealing with sickness that you already have.

9. Balance Your Health Insurance Plans

You must look at your health insurance plan to see what you are covered for and what you are not. It is critical that you know what is included in your plan so that you do not overpay for things you do not need. For example, if your health insurance does not cover prescription drugs, the chances are that your plan will have a lot of co-pays and deductibles. If this is the case, it might be a good idea to compare alternatives on the HealthCare.gov marketplace because competing plans may include prescription drug coverage at a similar or lower overall cost. Tools like GoodRx can also help you reduce out-of-pocket prescription costs independent of your plan, further reducing your total healthcare spend without changing your premium.

There are numerous ways to lower your health insurance premium. When choosing a policy, look at the high-low cost proportion. This will allow you to compare your health insurance policy’s high and low costs. You can also try to find a health insurance policy at a lower price by working with a licensed insurance broker or using the SHOP marketplace offered by HealthCare.gov for small businesses. There are numerous ways to lower your health insurance premium, so make sure to find one that works for you.

Plan Type	Avg. Monthly Premium (Individual, 2025)	Avg. Annual Deductible	Network Flexibility	Best For
HDHP (High-Deductible Health Plan)	$312	$2,800	Moderate	Healthy individuals who want HSA access
HMO (Health Maintenance Organization)	$359	$1,200	Low (in-network only)	Cost-conscious enrollees with a preferred PCP
PPO (Preferred Provider Organization)	$477	$1,000	High (in and out of network)	Those who need specialist access without referrals
EPO (Exclusive Provider Organization)	$398	$1,500	Low (in-network only, no referrals)	Enrollees wanting lower premiums with some flexibility
Catastrophic Plan	$198	$9,450	Moderate	Adults under 30 or those with hardship exemptions

Frequently Asked Questions

What is the fastest way to lower my health insurance premium right now?

The fastest way is to switch to a high-deductible health plan (HDHP) or apply for ACA premium tax credits through HealthCare.gov. Both options can reduce your monthly premium immediately at enrollment. If you qualify for a subsidy based on your income, you may be able to apply it directly to your monthly bill, lowering your out-of-pocket cost right away.

How do ACA subsidies work and do I qualify?

ACA subsidies, officially called Advanced Premium Tax Credits (APTCs), are government payments made directly to your insurer to lower your monthly premium. You may qualify if your household income falls between 100% and 400% of the federal poverty level, though enhanced subsidies have expanded eligibility in recent years. Use the subsidy estimator at HealthCare.gov to check your eligibility in minutes.

Can I lower my health insurance premium if I have a pre-existing condition?

Yes. Under the Affordable Care Act, insurers cannot charge you more or deny you coverage because of a pre-existing condition. You can still lower your premium by selecting a lower-tier plan (Bronze or Silver), applying for subsidies, or enrolling in an employer group plan, which spreads risk across all employees and typically lowers individual costs.

Is an HMO always cheaper than a PPO?

In most cases, yes. HMO plans typically carry lower monthly premiums than PPO plans because they restrict you to a network of in-network providers and require a primary care physician referral for specialists. However, if you frequently need out-of-network care or specialist access, the out-of-pocket costs from an HMO could offset the premium savings. Compare total annual costs, not just premiums.

How does a Health Savings Account (HSA) help lower my health costs?

An HSA lets you contribute pre-tax dollars — up to $4,300 individually or $8,550 for families in 2025 — to pay for qualified medical expenses tax-free. While HSA contributions do not directly reduce your listed premium, they lower your effective healthcare cost by reducing what you pay in federal income taxes. HSAs are only available with qualifying HDHPs.

What is the difference between a premium and a deductible?

A premium is the fixed monthly amount you pay to maintain your health insurance coverage, regardless of whether you use any medical services. A deductible is the amount you must pay out-of-pocket for covered services before your insurance begins sharing the cost. Generally, plans with lower premiums have higher deductibles, and vice versa. Choosing the right balance depends on how often you use healthcare.

Can my employer help me lower my health insurance premium?

Yes. Employer-sponsored health insurance is often the most cost-effective option because your employer typically pays a significant share of the premium — on average, employers cover 73% of the premium for single coverage according to KFF’s Employer Health Benefits Survey. If your employer offers multiple plan options, choosing an HMO or HDHP tier within the group plan can reduce your personal contribution further.

When can I change my health insurance plan to get a lower premium?

You can change your plan during Open Enrollment, which typically runs November 1 through January 15 for ACA marketplace plans. Outside of that window, you may qualify for a Special Enrollment Period (SEP) if you experience a qualifying life event such as job loss, marriage, divorce, the birth of a child, or moving to a new coverage area. Employer plans typically have their own annual enrollment windows.

Does shopping around for health insurance actually save money?

Yes, significantly. Premiums for similar coverage can vary by hundreds of dollars per month depending on the insurer, plan type, and your ZIP code. Using comparison tools on HealthCare.gov, state-based marketplaces, or working with a licensed broker who represents multiple carriers — such as those in networks affiliated with eHealth or GoHealth — can surface options you would not otherwise find. Always compare total annual costs including premiums, deductibles, and co-pays.

What is a top-up or supplemental health insurance plan and should I get one?

A top-up or supplemental plan is a secondary insurance policy that covers costs beyond your base plan’s limits, such as gaps left by a high deductible. Products from companies like Aflac and MetLife are designed to pay cash benefits directly to you when you face a covered health event. They are most useful when paired with a low-premium, high-deductible base plan, effectively giving you broader protection at a lower combined cost than a single comprehensive plan.