Introduction: Why the Cheapest Health Insurance Premiums in 2025 Matter
When choosing a health insurance plan, one of the first questions people ask is: “How much will it cost?” While the Affordable Care Act (ACA) creates national coverage standards, health insurance premiums still vary significantly by state.
In 2025, several U.S. states are offering more affordable premiums than others. This article explores the top 5 states with the cheapest health insurance premiums in 2025, what drives these costs, and how you can benefit from lower rates—especially if you’re considering relocation or switching plans.
If you’re new to the health insurance process, check out our Health Insurance Basics to get started.
What Determines the Cheapest Health Insurance Premiums by State?
The cheapest health insurance premiums in 2025 are influenced by several state-level and federal factors:
- Insurer Competition: More companies = lower pricing
- Healthcare Provider Costs: Local hospital and doctor rates matter
- Medicaid Expansion: States that expanded Medicaid under the ACA often have lower average premiums
- Population Demographics: Younger, healthier populations can help reduce risk pools
- State Policies: Reinsurance programs and local subsidies can reduce costs
Knowing these factors helps explain why states differ so much in affordability—even for similar ACA-compliant plans.
Tip: Use the Healthcare.gov plan comparison tool to explore 2025 plan rates by ZIP code.
🏆 Top 5 States with the Cheapest Health Insurance Premiums in 2025
1. Maryland
Average Monthly Premium (Before Subsidies): ~$336
Why It Ranks High:
Maryland uses a state reinsurance program that lowers costs for insurers, which leads to cheaper health insurance premiums for consumers.
Highlights:
- Strong Medicaid expansion
- Large number of ACA plan options
- Great for individuals under 45
Residents benefit from a balanced marketplace and lower-than-average deductibles, making Maryland the clear leader for the cheapest health insurance premiums in 2025.
2. New Hampshire
Average Premium: ~$341
Affordability Drivers:
New Hampshire has relatively low healthcare service costs and strong insurer participation. These factors contribute to its ranking in the top 5.
Benefits Include:
- Multiple insurers in all regions
- Competitive Bronze and Silver plans
- Medicaid expansion since 2014
If you’re looking for a lean ACA plan with essential benefits, New Hampshire delivers some of the cheapest health insurance premiums in 2025.
3. Minnesota
Average Premium: ~$350
Standout Features:
Thanks to MinnesotaCare, a public health insurance program, and a state-run exchange, the state offers plans with broad coverage at low costs.
Why It’s Affordable:
- Low out-of-pocket costs
- Emphasis on preventive care
- Consistently low premium hikes year over year
Want more comparison help? Visit our Compare Plans section.
4. Michigan
Average Premium: ~$357
Key Cost Factors:
Michigan expanded Medicaid and has seen strong insurer competition in its ACA marketplace, helping it remain one of the cheapest states for health insurance.
Plan Benefits in Michigan:
- Affordable Silver tier options
- Good rural provider access
- Robust mental health coverage
5. Colorado
Average Premium: ~$361
Why It Made the List:
Colorado introduced the Colorado Option, a public-private ACA plan requiring insurers to lower premiums gradually.
Unique Perks:
- Transparent pricing
- Preventive services fully covered
- ACA plan quality tracking built into the exchange
If you’re a digital nomad or remote worker, you’ll love Colorado’s flexible healthcare policies. Check our Global Health Insurance section to learn more.
Why Health Insurance Premiums Vary So Widely
While all ACA-compliant plans must cover essential health benefits, the base premium cost can differ due to:
- Regional healthcare usage
- Hospital and provider contracts
- Urban vs. rural access
- Demographic differences
For example, someone earning $40,000 in Maryland might pay $70/month after subsidies, while a person with the same income in Wyoming might pay over $300/month for similar coverage.
ACA Subsidies Can Reduce Your Premiums Even More
Even in states with the cheapest health insurance premiums in 2025, you can save more with ACA subsidies.
What qualifies you for subsidies?
- Income between 100%–400% of the federal poverty level
- Household size
- State of residence
How to estimate your savings:
Visit the Healthcare.gov subsidy calculator and enter your income and ZIP code.
Should You Move to a Cheaper State for Health Insurance?
While relocating for lower premiums isn’t realistic for everyone, it’s worth considering if you’re:
- A digital nomad or remote worker
- Retired and mobile
- Exploring new job opportunities
- Attending college out-of-state
States like Minnesota, Michigan, and Colorado offer both affordability and quality, especially for young adults and families.
We also explore this in: Health Insurance for Digital Nomads
Trusted External Sources
Conclusion: Your Location Could Save You Thousands
Choosing a health plan goes beyond just premiums, but when money is tight or you’re self-employed, finding the cheapest health insurance premiums in 2025 matters. Maryland, New Hampshire, Minnesota, Michigan, and Colorado lead the way—and understanding why can help you make a better decision.
Want more 2025 insights on ACA plans and cost-saving strategies? Visit our U.S. Health Insurance category for expert tips.