The Cheapest (and Best) Health Insurance in Austin, TX (2023)

For a 40-year-old in Austin, Texas, the best plans are offered by Friday Health Plans and Scott and White Health Plan, costing an average of $325 and $441 monthly, respectively.

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Advertising & Editorial DisclosureLast Updated: 1/20/2023
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In addition to location, your age, plan type and health care needs affect the cost of your health insurance premiums. MoneyGeek gathered and reviewed marketplace data to determine the cheapest health insurance providers in Austin.

Since cost isn’t the only important factor, we also rounded up the best health insurance companies in Austin based on affordability, customer service and plan options.

Not all plan types are offered by every insurer. Shop around to get the best option for your health care needs.

Furthermore, if only one insurer is available in your area, choose the best plan or tier for your situation.

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METHODOLOGY

Best Overall and Runner-Up

For best overall and runner-up, MoneyGeek evaluated cost, customer satisfaction and plan data obtained from the Health Insurance Exchange Public Use Files, the National Committee for Quality Assurance (NCQA) and the National Association of Insurance Commissioners (NAIC) complaint index to establish recommendations. Categories were weighted 55% for cost, 35% for customer service and 10% for plan options.

Best Cheap

In most cases, plans were aggregated to generate the estimated costs for any given company. Although the represented data shows the average premiums for any given section, specific company plans will vary in price. Unless otherwise stated, rates reflect the cost for a 40-year-old individual.

Best Overall Health Insurance in Austin

When purchasing health insurance, it’s important to consider a company’s plan options, cost-sharing choices and customer service in addition to the cost. Using these factors, MoneyGeek evaluated health insurance providers in Austin and determined Friday Health Plans as the best insurer, scoring 98 out of 100. It scored well in cost, customer service and plan options.

Best Health Insurance in Austin

Friday Health Plans

pros

Affordable premiums

Numerous plan options

High customer satisfaction

Free mental health visits

cons

Only available in select states

Out-of-network coverage in emergencies only

Limited customer service hours via phone

COMPANY HIGHLIGHTS

Since 2015, Friday Health Plans has been offering health insurance to individuals and small businesses who want simple and affordable plans. It has an above-average NCQA rating in Austin, indicating that the company also provides quality service.

With Friday Health Plans, you can choose from multiple plan tiers. They all come with perks such as free in-network primary care doctor visits, mental health visits and various generic prescription drugs. It’s worth noting, however, that this provider doesn’t cover out-of-network health care services except during emergencies.

Health Insurance in Austin Runner-Up

With a MoneyGeek score of 74 out of 100, Scott and White Health Plan is the second-best health insurance company in Austin. It scored well in terms of cost and customer service but lower in plan options.

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Health Insurance Runner-Up
Scott & White Health Plan

Scott and White Health Plan is a Texas-based company established in 1982 to provide affordable health insurance coverage and quality care to Texans. To date, it has approximately 400,000 members and covers 171 counties in north, central and west Texas.

The company’s plan tiers are limited. Policyholders have access to over 21,000 in-network doctors as well as preventive care, telehealth and wellness programs. If you receive care from an out-of-network physician or provider, you will only be covered if it is an emergency service or pre-approved.

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HOW TO FIND CHEAP HEALTH INSURANCE

Marketplace plans are usually categorized into metal tiers, with Bronze being the cheapest and Platinum (when available) being the most expensive. Some companies offer Catastrophic plans, but they’re only available to low-income individuals or those under 30 years of age.

It’s smart to look at Catastrophic or Bronze plans first. Make sure they cover your health care needs before making a purchase. Otherwise, Silver plans are your next best option since they may offer subsidies.

Cheapest Health Insurance in Austin for Individuals

Your health insurance premium is determined by how you split health care costs with your insurance provider. The cost can vary across state, city and county levels. In some instances, the best health insurance company may not be the cheapest.

If you value affordability over everything else, it’s essential to familiarize yourself with how the marketplace metal system, premiums and maximum out-of-pocket costs (MOOPs) work together. Your deductibles, copays and co-insurance also play significant roles in your health care costs.

As for the metal system, Catastrophic and Bronze offer the lowest monthly premiums. However, the trade-off is usually high maximum out-of-pocket costs, which are only ideal if you don’t require much medical attention.

Check out plan costs for metal tiers in Austin in the table below.

Cheapest Health Insurance in Austin for Individuals by Metal Tier
  • Metal Tier
    Company
    Monthly Premium
  • Catastrophic

    Friday Health Plans

    $272

  • Bronze

    Friday Health Plans

    $294

  • Expanded Bronze

    Friday Health Plans

    $312

  • Silver

    Scott and White Health Plan

    $441

  • Gold

    Friday Health Plans

    $424

With some companies, you can purchase Expanded Bronze plans. These offer slightly more protection than regular Bronze plans by covering at least one major service before you meet your deductible.

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UNDERSTANDING HEALTH INSURANCE COSTS

Understanding all the factors affecting your health care costs is crucial when shopping around for health insurance. MoneyGeek breaks down health care costs below.

  • Premium: The monthly cost you pay for your insurance policy is your premium.
  • Deductible: The amount you need to pay for covered services before your insurer starts covering its share is called your deductible.
  • Out-of-Pocket Maximum (MOOP): The limit on what you have to pay for health services in a given plan year is your MOOP.
  • Co-insurance: The rate you pay for a health service after meeting your deductible is your co-insurance.
  • Copay: The copay is the preset amount you pay for consultations, prescriptions and more.

How Age Affects Health Insurance Costs in Austin

Age is another primary factor affecting your health insurance costs. Insurance companies often increase premiums the older you get to accommodate the expected rise in health care needs.

The cheapest health insurance plans in Austin will almost always be Bronze or Expanded Bronze.

If someone selects a lower-tiered plan, they should make sure they are comfortable with the network to avoid paying out of pocket for out-of-network services.

Due to the restrictions on eligibility for Catastrophic plans, we did not include them in the cheapest company table below.

Cheapest Health Insurance in Austin by Age
  • Age
    Company
    Monthly Premium
  • 18

    Friday Health Plans

    $210

  • 26

    Friday Health Plans

    $236

  • 40

    Friday Health Plans

    $294

  • 60

    Friday Health Plans

    $625

Cheapest Health Insurance in Austin for Families

Your health insurance cost is also affected by your family size. Naturally, your premium will increase the more family members you add to your policy. That said, bundling your family under one plan is cheaper than purchasing separate policies for each member.

If you’re shopping for family health insurance plans in Austin, MoneyGeek researched the average cost of health insurance premiums by family size and metal tier.

Cheapest Premiums for Family Health Insurance
  • Metal Tier
    Family of Three
    Family of Four
    Family of Five
    Family of Six
  • Catastrophic

    $707

    $869

    $1,032

    $1,195

  • Bronze

    $765

    $941

    $1,118

    $1,294

  • Expanded Bronze

    $810

    $996

    $1,183

    $1,370

  • Silver

    $1,146

    $1,410

    $1,674

    $1,938

  • Gold

    $1,101

    $1,355

    $1,608

    $1,862

How to Find Cheap Health Insurance in Austin

No health insurance plan is perfect. It’s best to weigh the differences between costs and coverage to find the most suitable plan for your health care needs and budget.

For instance, Catastrophic and high-deductible health plans may only be ideal for individuals who don’t anticipate needing much medical care in a given year. Conversely, a plan with higher monthly premiums may save you money in the long run if you require more intensive care.

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SHORT-TERM HEALTH INSURANCE

Short-term health insurance can temporarily cover you while you’re between jobs or waiting for open enrollment to start. However, it’s not meant to replace marketplace plans. Temporary health plans don’t usually cover essential health benefits and pre-existing conditions. They also offer lower monthly premiums in exchange for higher copays and co-insurance, making the cost of treatment more expensive.

In addition, they don’t provide subsidies or tax credits.

Health Insurance Subsidies and Income-Based Assistance

Those with low income can reduce the cost of health insurance by seeking financial assistance. The American Rescue Plan removed the federal poverty level (FPL) of 400% and reduced it to 100% for 2022, giving more individuals access to health insurance subsidies.

Medicaid and the Children's Health Insurance Program (CHIP) are two other options worth looking into if you’re not eligible for a subsidy. To qualify for Medicaid, you must have an income between 100% and 150% of the FPL, depending on the state.

Finding the Best Health Insurance in Austin

Choosing the cheapest health insurance plan isn’t always the best decision. It may cost you more out-of-pocket, especially if you need frequent health care services.

Tips for Finding the Right Coverage for You

When shopping for health insurance in Austin, it’s vital to compare different providers and evaluate their plans to find the best option for your health care needs. To guide you on your health insurance journey, MoneyGeek outlines some important steps you can take below.

1

Know Where to Start

You can look for health insurance plans through your work, your parents (if you’re under 26 years of age), the health insurance marketplace, private insurance companies or the government.

2

Mark the Enrollment Deadlines

You can only purchase a health insurance plan during the open enrollment, which usually starts on November 1. If you miss this window, you can try qualifying for special enrollment. However, make a note of deadlines so that you can enroll during the appropriate times.

3

Understand Your Health Care Needs

Knowing your health care needs and preferences can help you in choosing a health insurance plan. Review the plan’s benefits summary to check if its coverage and network can meet your needs and preferences.

4

Review Costs

Analyze your monthly premium, maximum out-of-pocket cost, copay and deductible to get the full picture of how much you’ll pay for coverage. Plans with low monthly premiums usually have high out-of-pocket maximums. If you’re unsure what to get, Silver plans may be a good middle option. Remember that flat fees are generally better than a percentage of co-insurance.

5

Check Your Prescriptions

Make sure your prescriptions and other medications are covered for free or are at least affordable under your preferred plan.

6

Choose Your Plan

Once you’re confident with your chosen health insurance plan, even if it’s the cheapest option on the market, you can move forward with purchasing it.

Frequently Asked Questions About Health Insurance in Austin

Finding the right health insurance plan can be confusing. MoneyGeek’s answers to some frequently asked questions can help you learn more about health insurance in Austin.

About the Author


Brenna Kelly headshot

Brenna Kelly is a content manager at MoneyGeek specializing in health insurance. She has extensive experience in the content production field and is a licensed health insurance agent. She graduated from the University of Central Florida with a Bachelor of Science and a Master of Arts.


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