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Is Private Health Insurance Cheaper Than ACA in your state?
Short answer: for a healthy person who doesn't qualify for a subsidy, yes, usually by a wide margin. For everyone else, usually no. Here's the math behind that.
When private wins in your state
Take a healthy 42-year-old in Houston earning $95,000. On HealthCare.gov with no subsidy, a Silver plan from the major marketplace carriers in your state is roughly $650–$800 a month in 2026. A private PPO on the Cigna, Aetna and PHCS PPO network for the same person is roughly $380–$480. That's $3,000–$4,500 a year, with a broader network.
When ACA wins in your state
Same person earning $45,000: the premium tax credit could bring that Silver plan under $200 a month. No private plan competes with that. Same person with Type 1 diabetes or a recent cancer diagnosis: private plans may decline or exclude; the marketplace accepts them at the same price as anyone else. Medicaid expansion varies by state — in non-expansion states such as Texas, Georgia, Tennessee, South Carolina and Florida, adults under the poverty line can fall into a coverage gap.
What "cheaper" has to include
Compare out-of-pocket maximums, not just premiums. Many private PPOs have individual out-of-pocket caps around $6,000–$9,000, similar to marketplace Silver plans. Check that your doctors are in the PPO network. And remember private plans are month to month — if your income drops into subsidy range during the year, you can move to the marketplace at the next open enrollment or life event.
The state factor
Rules, carriers and prices vary by state — pick your state on our quoter to see exactly what's available where you live.
We run both quotes for every client — it's the only honest way to answer the question. Start here.