Best Health Insurance Companies In Texas 2025

After 15 years in the health insurance industry and 12 years living in Texas, I’ve found that Aetna stands out as a top choice for Texans seeking reliable health coverage. Their plans offer a balance of affordability and comprehensive benefits, making them a preferred option for many residents of the Lone Star State.

In Texas, Aetna’s average monthly premium for a Silver plan is approximately $498. However, premiums can vary based on factors like age, location, and chosen coverage level. For instance, a 40-year-old might expect to pay around $508 per month for an Aetna plan.

Aetna’s extensive provider network and member benefits, such as discounts at CVS Health locations, further enhance their appeal. Their commitment to customer satisfaction is evident, with significantly fewer complaints than the industry average.

Cheapest Health Insurance Companies In Texas

Finding affordable health insurance in Texas requires comparing rates across different providers. Below are five of the most budget-friendly insurers offering Silver plans, based on average monthly premiums.

Note: These rates are estimates based on a 40-year-old individual. Actual costs may vary depending on age, location, and eligibility for subsidies.

If you’re looking for even lower costs, you may qualify for subsidies under the Affordable Care Act (ACA). Many Texans can reduce their premiums significantly through financial assistance programs.

How Much Does Health Insurance Cost In Texas?

The average cost of health insurance in Texas depends on factors like age, plan tier, and location. In 2025, a Silver plan costs around $610 per month, while Bronze plans average $443 and Gold plans about $537. Catastrophic plans, designed for young and healthy individuals, cost around $375 monthly.

For a 40-year-old, the average Silver plan premium is approximately $573 per month. Costs can vary based on subsidies, employer-sponsored plans, and marketplace options. Texans may qualify for financial assistance through the Affordable Care Act, which can significantly lower premiums depending on income and household size.

Average Cost By Coverage Level

The cost of health insurance in Texas varies depending on the level of coverage you choose. Plans are categorized into different tiers—Bronze, Silver, Gold, and Platinum—each offering a balance between monthly premiums and out-of-pocket costs.

Bronze plans have the lowest premiums but higher deductibles, while Platinum plans have the highest premiums but the lowest out-of-pocket costs. Below is a breakdown of the average monthly premiums for each coverage level in Texas.

Average Cost By Family Size

The cost of health insurance in Texas also varies based on family size. Individual plans tend to be more affordable, but as dependents are added, premiums increase. Family plans typically provide coverage for spouses and children, with costs adjusted based on the number of individuals covered. Below is a breakdown of the average monthly premiums for different family sizes in Texas.

Average Cost Of Health Insurance Plans By City

Health insurance premiums in Texas vary by city due to factors such as healthcare provider costs, insurance competition, hospital rates and regional health risks. Below is a breakdown of the average monthly premiums for individual Silver health insurance plans in five major Texas cities.

Factors Affecting Health Insurance Costs In Texas

• Age – Older individuals typically face higher premiums due to increased health risks.
• Location – Urban areas often have higher premiums due to higher medical costs, while rural areas may have limited provider options.
• Coverage Level – Plans with more benefits, such as Gold or Platinum, come with higher premiums.
• Family Size – Adding dependents to a policy increases total costs.
• Tobacco Use – Smokers pay higher premiums due to associated health risks.
• Insurance Provider – Different insurers have varying pricing models and network agreements, affecting premium rates.

How To Save On Health Insurance In Texas

Texans can lower their health insurance costs by selecting the right plan, taking advantage of financial assistance programs, and making smart healthcare choices. Here are some key ways to reduce premiums, deductibles, and out-of-pocket expenses:

1. Compare Plans on the Marketplace

Shopping for plans on Healthcare.gov or private marketplaces allows you to find the best balance between premiums, deductibles, and coverage levels. Look for plans that cover essential benefits without unnecessary extras that increase costs.

2. Take Advantage of ACA Subsidies

Texans with low to moderate incomes may qualify for Affordable Care Act (ACA) premium tax credits, which can significantly lower monthly costs. For example:

• A 40-year-old earning $35,000 could qualify for a $250 monthly subsidy, reducing their premium.
• Households earning up to 400% of the federal poverty level may also receive financial assistance.

3. Consider a High-Deductible Health Plan (HDHP) with an HSA

• HDHPs offer lower monthly premiums but require higher out-of-pocket costs.
• Pairing an HDHP with a Health Savings Account (HSA) lets you save money tax-free for medical expenses.
• HSA funds never expire and roll over annually.

4. Choose Employer-Sponsored Health Insurance

If your job offers group health insurance, it is usually more affordable than individual coverage. Some employers even contribute to premiums, further reducing costs.

No employer coverage? Texans can explore Medicaid, short-term health plans, or ACA marketplace options.

5. Stay In-Network

Insurance companies charge higher out-of-network rates for doctors and hospitals. Always confirm that your provider is in-network to avoid surprise medical bills.

6. Use Preventive Care Services

Under the ACA, preventive services like screenings, vaccines, and annual checkups are free with most health plans. Early detection can prevent costly treatments later.

7. Lower Prescription Costs

• Request generic medications instead of name brands.
• Use pharmacy discount programs like GoodRx to compare prices.
• Check manufacturer coupons for brand-name drugs.

8. Look for Special Discounts

Some insurers offer discounts for:

• Paying premiums annually instead of monthly.
• Using telemedicine for doctor visits.
• Maintaining a healthy lifestyle (e.g., non-smoker discounts).

By exploring these cost-saving strategies, Texans can reduce their health insurance expenses while ensuring they receive quality care.

How To Sign Up For A Health Insurance Policy

Enrolling in a health insurance policy in Texas is a simple process if you follow the right steps. Whether you’re purchasing a plan through the ACA marketplace, your employer, or a private insurer, here’s what you need to do:

1. Check Your Eligibility

Before selecting a plan, determine which health insurance options are available to you:

• Employer-Sponsored Insurance – If your job offers coverage, this is often the most affordable option.
• ACA Marketplace Plans – If you don’t get insurance through work, you can purchase a plan on Healthcare.gov.
• Medicaid & CHIP – If you have low income, you may qualify for free or low-cost coverage through Texas Medicaid.
• Medicare – If you’re 65 or older, check your eligibility for Medicare.

2. Gather Required Documents

To apply, you will need:

• Proof of income (pay stubs, tax returns, or W-2s)
• Social Security Number or proof of legal residency
• Employer or past insurance details (if applicable)

3. Visit the Health Insurance Marketplace

For ACA plans, visit Healthcare.gov during open enrollment (Nov 1 – Jan 15) to apply. Private insurers and employer plans may have their own enrollment periods.

4. Compare Plans

Review the available plans based on:

• Premiums (monthly cost)
• Deductibles & Out-of-Pocket Maximums
• Network of Doctors & Hospitals
• Prescription Drug Coverage

Plan Tiers:

• Bronze – Lowest premiums, highest out-of-pocket costs
• Silver – Balanced coverage, qualifies for subsidies
• Gold – Higher premiums, lower out-of-pocket costs
• Platinum – Best coverage, but highest monthly cost

5. Check for Financial Assistance

Many Texans qualify for ACA subsidies that lower monthly premiums. These tax credits are based on household income and family size.

6. Select & Enroll in a Plan

Once you’ve found the best policy for your budget and health needs, submit your application and choose a payment option.

7. Pay Your First Premium

Most insurers require payment before coverage begins. Ensure your payment is submitted before the due date to activate your policy.

By following these steps, Texans can find an affordable health insurance plan that meets their needs and secures their financial future.

Health Insurance Coverage Levels

Health insurance plans are categorized into four tiers—Bronze, Silver, Gold, and Platinum—each offering different cost structures and coverage levels. Here’s how they compare:

Key Considerations:

• Cost-Sharing Reductions (CSRs): Available only on Silver plans, CSRs lower deductibles and out-of-pocket costs for eligible low-income individuals.
• Insurance vs. Out-of-Pocket Split:
  • Bronze: Covers ~60% of healthcare costs; policyholder pays ~40%.
  • Silver: Covers ~70%; policyholder pays ~30%.
  • Gold: Covers ~80%; policyholder pays ~20%.
  • Platinum: Covers ~90%; policyholder pays ~10%.

Choosing the right plan depends on budget, health needs, and expected medical expenses. If you qualify for financial assistance, Silver plans may provide the best value.

Health Insurance Options in Texas If You Have A Low Income

Texans with limited income have several options for affordable health insurance. These programs provide essential medical coverage or financial assistance to reduce healthcare costs.

1. Medicaid

Medicaid offers free or low-cost healthcare for eligible low-income Texans, including children, pregnant women, parents, and disabled individuals.

• Eligibility: Income must be below 138% of the Federal Poverty Level (FPL) (about $20,783 per year for an individual or $35,600 for a family of three in 2024).

2. Children’s Health Insurance Program (CHIP)

CHIP covers children under 19 whose families earn too much for Medicaid but can’t afford private insurance.

• Eligibility: Family income must be below 200% of FPL (~$49,720/year for a family of three).
• Cost: Low monthly premiums (~$50 max) and copays based on income.

3. ACA Marketplace Subsidies

The Affordable Care Act (ACA) provides subsidies that lower monthly premiums and deductibles for eligible Texans.

• Eligibility: Available for those earning 100%-400% of FPL (~$14,580-$58,320 for an individual).
• Savings: Many enrollees qualify for plans under $50 per month after subsidies.

4. Federally Qualified Health Centers (FQHCs)

FQHCs offer primary care, dental, and mental health services on a sliding fee scale based on income.

• Eligibility: No insurance required; fees are income-based.

5. Charity Care Programs & Hospital Assistance

Some hospitals and clinics offer charity care programs that reduce or eliminate medical bills for uninsured patients.

• Eligibility: Varies by hospital, but typically covers those under 200% of FPL.

6. Short-Term Health Insurance

Short-term plans provide temporary, limited coverage for those who don’t qualify for ACA subsidies or Medicaid.

• Best for: Individuals in transition (job change, waiting for employer coverage).
• Warning: Does not cover pre-existing conditions and has high out-of-pocket costs.

7. Medicare Savings Programs (For Low-Income Seniors & Disabled Texans)

Texans on Medicare with limited income may qualify for programs that help pay Medicare Part A & B costs.

• Eligibility: Income must be below 135% of FPL (~$19,683/year for an individual).

Key Takeaways:

• Most uninsured Texans qualify for financial help – Medicaid, CHIP, or ACA subsidies.
• FQHCs and hospital charity programs offer care regardless of insurance status.
• Short-term insurance is an option, but has major limitations compared to ACA plans.

By exploring these options, low-income individuals and families in Texas can find affordable healthcare solutions that fit their financial situation.

Common Health Insurance Terms

Health insurance can be confusing, especially with industry-specific terminology. Here are some of the most common terms Texans may encounter:

• Premium – The monthly amount paid for health insurance coverage.
• Deductible – The amount an individual must pay out-of-pocket before the insurance starts covering expenses.
• Copay – A fixed amount paid for services like doctor visits or prescriptions.
• Coinsurance – The percentage of costs shared between the policyholder and insurance provider after meeting the deductible.
• Out-of-Pocket Maximum – The highest amount an individual will pay in a year before the insurer covers 100% of additional costs.
• HMO (Health Maintenance Organization) – Requires referrals and network restrictions but offers lower costs.
• PPO (Preferred Provider Organization) – Allows more flexibility in choosing doctors but comes with higher premiums.

Understanding these terms can make it easier to compare plans and navigate health insurance policies.