Quick answer
Most families get health insurance through a parent’s job. In 2025 the average job-based family plan cost $26,993 a year, with workers paying $6,850 of it. If a job-based plan isn’t available or affordable, you can buy a family plan on the ACA marketplace, where premium tax credits can lower the cost. Children often qualify for CHIP or Medicaid even when their parents earn too much, so many families mix coverage types.
Key takeaways
- Workers paid an average of $6,850 a year toward job-based family coverage in 2025.
- If family coverage at work costs more than 9.96% of household income (10.22% in 2027), family members can get marketplace tax credits.
- For 2027 coverage, a family of four can get tax credits with income up to $132,000.
- The median state covers children through Medicaid or CHIP up to 255% of the poverty level.
- Children’s dental and vision care are essential benefits on marketplace plans.
On this page
Your options
| Option | Best for |
|---|---|
| Job-based family plan | Families with an employer that pays a good share of family coverage |
| Marketplace family plan | Families without an affordable job-based offer, especially if they qualify for tax credits |
| Medicaid and CHIP | Children in low- and moderate-income families, and parents with low incomes |
| A mix of plans | Families where kids qualify for CHIP or where family coverage at work is expensive |
| COBRA | Keeping the same family plan for a while after leaving a job |
See health insurance for children and health insurance for low-income families for more.
What family coverage costs
On the marketplace, a family premium is the sum of each person’s age-based rate, and only the three oldest children under 21 are charged. Children 14 and younger cost about 77% of what a 21-year-old pays. Your actual cost depends on your income, since tax credits cap what you pay for the benchmark silver plan at a share of household income. See what families pay in how much health insurance costs for a family of 3, a family of 4 and a family of 5.
Savings for families
| Family size | Tax credit income limit for 2027 coverage (400% of poverty level) | 255% of poverty level (CHIP in the median state) |
|---|---|---|
| 3 | $109,280 | $69,670 |
| 4 | $132,000 | $84,150 |
| 5 | $154,720 | $98,630 |
Since 2023, the “family glitch” is fixed: whether your family can get marketplace help depends on the cost of family coverage at work, not just the worker’s own coverage.
Dental, vision and orthodontics
Marketplace plans must offer dental and vision coverage for children, sometimes through a separate dental plan. Adult dental and vision usually aren’t included; see does Obamacare cover vision. Braces are usually covered only when they’re medically necessary; see does health insurance cover braces. LASIK is rarely covered; see does health insurance cover LASIK.
If you lose or leave a job
COBRA lets your family keep the same plan, usually for 18 months, but at up to 102% of the full premium. A marketplace family plan with a tax credit often costs less. You have 60 days after losing coverage to enroll. If you’re thinking of leaving your employer’s plan on purpose, see can you drop your employer-sponsored health plan. Dropping job-based coverage voluntarily doesn’t open a marketplace enrollment window.
If you own or work for a small business, your employer isn’t required to offer coverage, but some offer group plans or reimburse workers for individual plans.
Choosing a family plan
- Make sure every family member’s doctors, including pediatricians, are in the network.
- Compare family deductibles and out-of-pocket limits. For 2026, the family limit can be as high as $21,200 ($24,000 in 2027).
- Check that each person’s prescriptions are covered.
- Compare one family plan with splitting coverage; see covering all family members under the same policy.
Related guides: health insurance for a couple, how to add a newborn to your health insurance and what it costs to have a baby.
See family plans and prices in your area: compare quotes by ZIP code.
Frequently asked questions
How much is family health insurance per month?
Job-based family coverage averaged $26,993 a year in 2025, or about $2,250 a month, with workers paying about $571 a month. Marketplace costs depend on ages, location and income.
Can my kids get CHIP if I have insurance through work?
CHIP is for children who don’t have other health coverage, but having access to a job-based plan usually doesn’t disqualify them. If family coverage at work is expensive, compare it with CHIP. Some states make children wait up to 90 days after dropping job-based coverage, with exceptions when that coverage cost too much.
Can I put my family on a marketplace plan if I have coverage at work?
Yes. Your family can buy a marketplace plan, and can get tax credits if family coverage at work costs more than 9.96% of household income in 2026 (10.22% in 2027).
Sources
This article is general information, not insurance or tax advice. Costs and eligibility depend on your state, income and family. Last reviewed September 2026.