Best Cheap Health Insurance for Young Adults
Blue Cross Blue Shield has the best health insurance for young adults because it's easy to find covered doctors.
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Best Health Insurance for Young Adults
Kaiser Permanente offers the cheapest health insurance for young adults who can get it. 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 chose the best health insurance companies for young adults by considering price, coverage and service for major health insurance companies. Our 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.
ValuePenguin 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 cheap health insurance companies for young adults.
A Bronze plan, which is a good option for most young adults, costs an average of $388 per month for a 21-year-old. These plans have cheaper monthly rates than other plan tiers.
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, because Bronze plans require you to pay for more of your medical care yourself. Even with a Bronze plan, many types of preventive health care, like annual wellness visits, are free.
Cheap medical insurance for young adults
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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 can often 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 | 4.0 out of 5 | $315 | |
| Ambetter | 4.0 out of 5 | $344 | |
| Molina | 4.0 out of 5 | $355 | |
| Oscar | 2.5 out of 5 | $364 | |
| United Healthcare | 4.0 out of 5 | $379 | |
Average monthly cost for a 21-year-old with a Bronze plan.
Remember that the best health insurance for you will depend on your unique situation.
If you have 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
Most affordable health insurance for young adults: Kaiser Permanente
Best health insurance app: Oscar
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 a low income, you might qualify for Medicaid, which is usually free. If you do have to buy your own health insurance, you might get a lower rate because of your income. And if you have access to health insurance through your job, your employer will likely pay for part of your monthly rate.
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 rate subsidies that low your monthly rate.
These are also called tax credits, and they 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.
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 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 usually comes out of your paycheck. You can also add a spouse and children to your policy through work. Your employer might not cover the cost to add dependents, though, which means you could have to pay their full monthly rate yourself.
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.
Cost of health insurance for young adults by plan tier
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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 because it helps you afford medical care, even if you're young and don't go to the doctor often. You might not have serious health issues in your 20s, but accidents can still happen. Without health insurance, you might not be able to afford to see a doctor or you could be left with large medical bills to pay yourself.
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.
About the Author
Senior Writer
Cate Deventer is a Senior 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.
