Health insurance costs are rising again for 2027, but your total spending still depends a lot on choices you control. There are two places to save: the monthly premium, and what you pay when you actually use care. This guide covers practical ways to lower both, without giving up coverage you need.
What Is the Fastest Way to Lower Your Health Insurance Costs?
The fastest way to lower health insurance costs is to apply through HealthCare.gov or your state’s marketplace and see whether you qualify for financial help based on your income. Many people never check, and they pay full price for a plan they could have gotten for less.
A Marketplace application can show three kinds of help:
- A premium tax credit that lowers your monthly premium
- Cost-sharing reductions that lower your deductible, copays, and coinsurance
- Eligibility for Medicaid or CHIP
HealthCare.gov explains how income levels connect to savings on Marketplace coverage. It also notes that savings are based on your expected income for the coverage year, not last year’s.
The enhanced subsidies that ran through 2025 have expired. For 2027, the original premium tax credit generally applies to households between 100% and 400% of the federal poverty level, so it’s worth checking even if you didn’t qualify before. For more on how premiums, deductibles, and the subsidy changes fit together, see what health insurance is expected to cost in 2027.
Should You Choose a Silver Plan If You Qualify for Extra Savings?
If your income qualifies you for cost-sharing reductions, you must choose a Silver plan to get them. These “extra savings” lower your deductible, copays, and out-of-pocket maximum.
You can still use a premium tax credit with a Bronze or Gold plan, but you would give up the cost-sharing reductions. The lower your income within the qualifying range, the larger the reduction. For someone who expects to use care during the year, a Silver plan with these reductions can cost less overall than a Bronze plan with a lower premium. Your Marketplace application will show whether you qualify.
Is Medicaid or CHIP an Option for You or Your Children?
Medicaid and the Children’s Health Insurance Program (CHIP) provide free or low-cost coverage to people who meet income and other rules, which vary by state. When you fill out a Marketplace application, it checks for these programs automatically.
Children can qualify for CHIP even when their parents earn too much for Medicaid. If you’re paying to cover kids on a private plan, check whether they’re eligible.
Why Shouldn’t You Auto-Renew Your Health Plan Without Comparing?
Plans, prices, provider networks, and drug lists can change from year to year, so last year’s best plan may not be this year’s best value. If you let your plan renew automatically, you may end up on a plan that costs more or covers less without realizing it.
Open enrollment is your yearly chance to compare. In states that use HealthCare.gov, enrollment for 2027 coverage runs from November 1, 2026, through January 15, 2027, and you need to enroll by December 15, 2026, for coverage that starts January 1. State-run marketplaces may use different dates. Looking at several plans side by side is the same idea behind getting enough quotes to make a real comparison on any type of insurance.
How Do You Pick the Plan That Costs the Least Overall?
The plan that costs the least overall is the one with the lowest combined premiums and expected out-of-pocket costs for the amount of care you’re likely to use. The plan with the lowest monthly premium is not always the cheapest choice.
- If you rarely use care: a lower-premium plan with a higher deductible may cost less over the year.
- If you have ongoing prescriptions, regular specialist visits, or a planned procedure: a plan with a higher premium and lower cost-sharing can come out cheaper.
- In either case: compare the worst-case year, meaning 12 months of premiums plus the plan’s out-of-pocket maximum.
How Can You Lower What You Pay When You Use Care?
Staying in network, checking drug coverage, and using lower-cost places of care are the most reliable ways to cut your out-of-pocket spending.
Stay In Network
In-network providers have agreed to discounted rates with your plan, while out-of-network care often costs much more. Out-of-network costs usually don’t count toward your out-of-pocket maximum. Before an appointment, confirm the provider is in network with your insurer, not just with the doctor’s office.
Check the Drug List and Ask About Generics
Each plan has a drug list, called a formulary, that places medications in cost tiers. A generic or a lower-tier alternative may cost much less, so ask your doctor or pharmacist whether one is appropriate. Check a plan’s formulary before you enroll if you take regular medications.
Use Covered Preventive Care
Most ACA-compliant plans cover a set of preventive services with no copay when you use an in-network provider, even before you meet your deductible. Ask your provider which services are billed as preventive, because a visit that also addresses a new problem can be billed differently.
Know Your Lower-Cost Options for Non-Emergencies
For non-emergency issues, many plans charge less for telehealth, a primary care visit, or urgent care than for an emergency room visit. Check your plan’s cost for each one ahead of time. If you think you’re having a medical emergency, go to the emergency room or call 911.
Can a Health Savings Account Lower Your Costs?
A health savings account (HSA) can lower your overall costs because the money you put in is tax-advantaged and can be used for qualified medical expenses. You need to be enrolled in an HSA-eligible plan to contribute.
As of January 1, 2026, Bronze and Catastrophic plans on the individual market count as HSA-eligible, along with traditional high-deductible health plans. For 2027, the IRS contribution limits are $4,500 for self-only coverage and $9,000 for family coverage. People 55 and older can contribute an extra $1,000. Whether an HSA makes sense depends on your tax situation and how much you can set aside, so check the details with a tax professional.
Are There Other Ways to Lower Your Premium?
Yes. Comparing other coverage you can get through work, reporting income changes, and reviewing your bills can all lower what you spend.
- Compare job-based options. If you or your spouse can get coverage through work, compare it with Marketplace plans. Employers usually pay part of the premium. Having an affordable employer offer can also affect whether you qualify for a premium tax credit.
- Report income changes during the year. If your income drops, you may qualify for more help. If it rises, updating your application can help you avoid owing money when you file taxes.
- Know how tobacco use affects your price. Under the ACA, insurers can charge tobacco users more for individual coverage. How this is applied varies by state and insurer.
- Review your bills and Explanation of Benefits. Billing errors happen. Compare each bill with what your insurer says you owe before you pay it.
Frequently Asked Questions
Can I lower my health insurance premium in the middle of the year?
Usually you can only change plans during open enrollment or after a qualifying life event, such as losing other coverage, moving, or a change in household size. If your income changes, you can update your Marketplace application at any time, which may change your premium tax credit.
Is the cheapest health insurance plan always the best way to save?
No. The plan with the lowest premium often has the highest deductible and out-of-pocket costs. If you use a lot of care, a plan with a higher premium can cost less over the full year. Compare total expected cost, not just the monthly price.
Do I have to choose a Silver plan to get help paying for health insurance?
Only for cost-sharing reductions. A premium tax credit can be used with Bronze, Silver, Gold, or Platinum Marketplace plans. Cost-sharing reductions, which lower deductibles and copays, only apply if you qualify based on income and enroll in a Silver plan.
Can I use an HSA with a Bronze plan in 2027?
Generally, yes. Starting January 1, 2026, Bronze and Catastrophic plans on the individual market are treated as HSA-eligible. Other HSA rules still apply, such as not having other disqualifying coverage. Confirm your eligibility with your plan or a tax professional.
This article is for informational purposes only and does not constitute insurance, legal, or financial advice. Insurance products, rates, and terms vary by state and insurer; consult a licensed agent or your policy documents before making coverage decisions.