Affordable Health Insurance in Vermont
Health insurance in Vermont doesn’t have to stretch your budget. Thanks to federal subsidies and Vermont’s community rating system, where all adults pay the same base premium regardless of age, most residents find quality coverage for far less than expected. This guide shows you how to maximize savings through marketplace plans and financial assistance programs.
How Much Does Health Insurance Cost in Vermont?
In 2026, the average monthly premium for a Vermont marketplace plan is around $580 before subsidies. However, with income-based assistance, many residents pay significantly less — some even as low as $10 to $50 per month.
With Subsidies
Most people earning under 400% of the Federal Poverty Level qualify for premium tax credits that dramatically reduce monthly costs.
Zero-Cost Options
Some Vermonters qualify for free coverage through Medicaid or Dr. Dynasaur with comprehensive benefits and no premiums.
Catastrophic Plans
Available for adults under 30 or those with hardship exemptions, offering very low premiums with high deductibles.
What Affects Your Monthly Premium?
Vermont uses “community rating,” meaning premiums are the same for all adults regardless of age — one of only three states with this consumer protection. Several factors still impact your costs:
- Household income and size — Determines subsidy eligibility and amount
- Plan level — Bronze, Silver, Gold, Platinum each have different premiums
- Insurance carrier — MVP and Blue Cross Blue Shield of Vermont have different rates
- Eligibility for subsidies or Medicaid — Can dramatically reduce or eliminate costs
Vermont Advantage: Unlike most states, Vermont prohibits insurance companies from charging higher premiums based on age or tobacco use. A 25-year-old pays the same rate as a 60-year-old for the same plan.
Subsidies & Cost-Saving Programs
1. Premium Tax Credits (APTC)
These lower your monthly premium based on your income. The subsidy is calculated to ensure you don’t pay more than a certain percentage of your income for health insurance. If you’re self-employed or between jobs, these credits can make quality coverage affordable.
Example: A single person making $30,000 a year might only pay $80–$120/month for a Silver plan instead of the full ~$1,100.
2. Cost-Sharing Reductions (CSRs)
If your income falls below 250% of the Federal Poverty Level and you enroll in a Silver plan, you may qualify for lower deductibles, copays, and out-of-pocket maximums. This is in addition to premium tax credits.
Example Savings by Household Type
| Household | Annual Income | Estimated Monthly Premium | Benefits |
|---|---|---|---|
| Single adult | $28,000 | ~$90/month | APTC + CSR; reduced deductible |
| Family of four | $70,000 | $250–$400/month | Large subsidy; shared premiums |
| Unemployed individual | $0 | $0 (Medicaid) | Free comprehensive coverage |
Note: Income percentages are based on the Federal Poverty Level (FPL), which is updated annually. Your actual subsidy amount depends on your specific household income, size, and the cost of plans in your area.
Want to know exactly how much you qualify for? Get a personalized subsidy calculation in minutes — most customers save hundreds per month.
Calculate Your Savings Speak to a Specialist: 1-888-215-4045Medicaid and Low-Income Options
If your income is especially low, you might qualify for Vermont Medicaid or Dr. Dynasaur — both offering comprehensive coverage at little to no cost.
Vermont Medicaid
Available to adults under approximately 138% of the FPL. Covers doctor visits, hospital care, prescriptions, mental health services, and more with minimal or no cost-sharing.
Dr. Dynasaur
A Vermont-specific program providing free or low-cost coverage for children under 19 and pregnant individuals up to 317% of the FPL. Premiums based on income level.
Application Process
Apply through Vermont Health Connect. If you’re eligible for Medicaid, you’ll be automatically enrolled rather than selecting a marketplace plan.
No Asset Tests
Vermont Medicaid eligibility is based solely on income, not assets. You can qualify regardless of savings or property ownership.
Best Low-Cost Plan Options in Vermont
Bronze Plans
Lowest premiums but may come with deductibles over $8,000. Best for healthy individuals who rarely need medical care and want catastrophic protection. In 2026, Bronze plans are now HSA-eligible through Vermont Health Connect.
- Monthly premiums: $840–$960 (same rate for all adults due to community rating)
- Best for: Minimal healthcare usage, emergency coverage only
- Deductibles: $7,000–$9,000 typical
Silver Plans with CSRs
Excellent value if you qualify for cost-sharing reductions. Some Silver plans with CSRs have deductibles under $500 and low copays, making them more generous than Gold plans at a lower premium.
- Monthly premiums: $1,100–$1,300 before subsidies (varies by carrier)
- Best for: Anyone earning under 250% FPL who qualifies for CSRs
- Deductibles with CSR: $0–$500 (instead of $3,000+)
Catastrophic Coverage
For eligible individuals under 30 or those with hardship exemptions. Premiums can be very low but deductibles are extremely high ($10,600 in 2026). Now HSA-eligible for the first time.
- Monthly premiums: Lower than Bronze plans for eligible enrollees
- Best for: Healthy individuals under 30 seeking minimal premiums
- Coverage: Three primary care visits before deductible, then catastrophic protection
Medicaid
Comprehensive coverage with little or no cost-sharing. Covers preventive care, hospital visits, prescriptions, mental health services, and more.
- Monthly premium: $0
- Best for: Low-income individuals and families
- Deductibles: None or minimal
Marketplace Plans vs Private Health Insurance
While most Vermonters use Vermont Health Connect to access subsidized coverage, some may choose private plans directly through insurers or brokers. Here’s how they compare:
Marketplace Plans
Eligible for subsidies, standardized coverage levels, and regulated enrollment periods. Must comply with ACA requirements.
Private Plans
May offer broader provider networks or plan types like PPOs, but often without financial assistance. More flexibility in network and benefits.
When to Choose Marketplace
If you qualify for subsidies (income under 400% FPL), marketplace plans almost always provide better value.
When to Consider Private
If you don’t qualify for subsidies or need specific provider access (like nationwide PPO networks).
Important: For most Vermont residents, marketplace plans through Vermont Health Connect provide the best combination of coverage and affordability.
Who Should Consider Low-Cost Plans?
Freelancers and Gig Workers
No employer coverage, but often qualify for subsidies based on variable income. Can adjust coverage during annual open enrollment.
Part-Time Employees
Often don’t receive job-based insurance and can qualify for affordable marketplace plans with subsidies.
Early Retirees
Need coverage before Medicare eligibility at 65. Vermont’s community rating means no age penalty — you pay the same as younger adults.
Young Adults
Often qualify for catastrophic or low-cost Bronze plans. May also be eligible for parent’s plan until age 26.
Low-Income Families
May benefit from both subsidies and Medicaid/Dr. Dynasaur programs offering comprehensive coverage at minimal cost.
Self-Employed Professionals
Can deduct health insurance premiums as a business expense, reducing overall tax burden while maintaining coverage.
Real Vermont Residents Saving on Health Insurance
“As a freelance designer, I didn’t think I could afford health insurance. But with premium tax credits and a Silver plan, I’m now paying under $100 a month—and my prescriptions are covered. Vermont’s system made it easier than I expected.”
“We’re a family of three with fluctuating income. Using Vermont Health Connect, we found a Silver plan with a $0 deductible and a premium under $300. It’s made a huge difference in our peace of mind.”
Frequently Asked Questions
What income qualifies for reduced-cost health plans in Vermont?
Most people earning under 400% of the federal poverty level can receive premium tax credits. For a single person in 2026, that’s about $62,600 per year. Cost-sharing reductions are available to those earning under 250% FPL, which is approximately $39,125 annually for an individual.
Is there short-term health insurance in Vermont?
No. Vermont does not allow short-term health insurance sales. Instead, residents must use the state marketplace (Vermont Health Connect) or apply for Medicaid if they meet income requirements.
Can I get coverage if I’m unemployed?
Yes. Unemployed Vermont residents may qualify for premium subsidies through Vermont Health Connect or for Medicaid depending on income. COBRA coverage is also available but is usually more expensive than marketplace options.
Is COBRA considered affordable?
COBRA is typically more expensive than marketplace coverage because you pay the full premium, including the employer portion, plus a 2% administrative fee. Most people find significantly lower costs and better assistance through Vermont Health Connect.
Can I switch plans if my income changes?
Yes. If your income changes significantly, you should report it to Vermont Health Connect. This may qualify you for a Special Enrollment Period and can adjust your subsidy amount to better match your current situation.
Why are Vermont premiums the same regardless of age?
Vermont uses community rating, meaning insurance companies cannot charge older adults more than younger adults. Only Vermont, New York, and Washington D.C. follow this rule. It protects consumers from age-based pricing but results in higher premiums for younger residents compared to age-rated states.
Additional Vermont Health Insurance Resources
Comprehensive guide to Vermont health insurance options, carriers, and enrollment considerations.
Self-Employed Coverage in VermontHealth insurance guidance for freelancers and small business owners seeking flexible coverage.
PPO Health Insurance PlansOverview of PPO health insurance plans and how broader provider access works.
Comparing PPO, HMO, and EPO PlansUnderstand key differences in network structure, flexibility, and referral requirements.
Ready to Start Saving on Vermont Health Insurance?
Ready to find affordable coverage? Our licensed agents can help you compare plans, calculate subsidies, and enroll in the right Vermont health insurance plan — most customers save hundreds per month.
Get Your Free Quote Now Call Today: 1-888-215-4045Independent Broker Notice
ForHealthInsurance.com is an independent health insurance agency serving Vermont residents. We are not affiliated with any carrier or government agency. We help you compare plans and enroll in coverage that meets your needs at no extra cost to you.