Relative Cost of Coverage
At $374 per month, Arkansas’s average Bronze premium is the 17th lowest among the 50 states—above New Hampshire (the least-expensive state with an average premium of $273) and below Vermont (the most-expensive state with an average premium of $854).
Because Arkansas’s average premiums are lower than the U.S. average and incomes are much lower than the U.S. median, the premium represents 7.1% of median household income—higher than the national average of 6.3%.
|
Avg Premium |
Premium / Household Income |
|
|
Arkansas |
$374 |
7.1 % |
|
United States |
$425 |
6.3 % |
Variation Within the State
One of the most striking features of Arkansas’s county-level data is its uniformity: every county shows essentially the same average Bronze premium for a 30-year-old—$374 per month. That lack of geographic variation sets Arkansas apart from most other states, where premiums often swing dramatically between urban centers and rural areas.
This consistency arises because Arkansas operates as a single rating area on the individual market. Carriers file one set of rates that apply statewide, so residents in Little Rock pay the same for a given age and metal tier as someone up in Benton or down in Union County. The result is a level playing field: employees relocating within the state won’t see their premiums spike or dip simply because of their county code.
For small-business owners, that uniformity simplifies budgeting and communication. Your team doesn’t need county-by-county cost comparisons—everyone faces the same sticker price. And because there are no low-cost pockets or high-cost outliers to navigate, you can focus your benefits strategy on age and income differences rather than geography.
Variation by Age
|
Age |
Average Bronze |
Average Silver |
Average Gold |
|
21 |
$329 |
$387 |
$445 |
|
30 |
$374 |
$439 |
$505 |
|
40 |
$421 |
$494 |
$569 |
|
50 |
$588 |
$690 |
$795 |
|
60 |
$894 |
$1,049 |
$1,208 |
Average premiums for Bronze plans rise by approximately $5 per year from age 21 to 30. Through the 30s, this increases to about $5 per year. The pace quickens in the 40s, with an average annual increase of roughly $17, and then surges to approximately $31 per year for those in their 50s. Silver and Gold plans follow a similar trajectory, consistently costing about 17% and 35% more than Bronze plans, respectively, at each age band.
The Role of Premium Tax Credits
Premium Tax Credits (PTCs) limit the share of household income that is spent on a marketplace plan.
They equal the difference between (a) the premium of the benchmark Silver plan for an employee’s age and county and (b) a sliding-scale contribution tied to household income. Because benchmark premiums rise with age, PTCs rise more or less in step; because the required contribution shrinks as income falls, credits grow even faster for lower-paid workers.
When a company offers affordable coverage—whether through a group plan, an ICHRA, or a QSEHRA—the employee forfeits the credit. If the employer’s benefit isn’t meaningfully higher than the federal subsidy it replaces, neither the business nor the worker comes out ahead. In practice, we’ve found that when most employees qualify for about $200 or more per month in PTCs, an employer-funded plan rarely delivers additional value.
For Arkansas, that $200-mark is reached at roughly $25,000 of wages for a 30-year-old and about $25,000 for a 40-year-old. If most of your team sits above those thresholds, consider skipping an affordable plan—or design an HRA that is affordable for higher-paid staff but intentionally unaffordable for lower-paid or older employees, letting each person keep whichever option (company benefit or federal credit) leaves them better off.
Why HRAs Usually Outperform Small-Group Insurance
For most small employers in Arkansas, reimbursing individual-market premiums through an ICHRA or QSEHRA offers clear advantages over buying a traditional group contract:
- Lower structural cost – Individual carriers must meet an 80 % medical-loss ratio, publish rates, and pay lower commissions; small-group carriers face looser caps and higher commissions, which show up in premiums.
- Employee choice and portability – Each worker selects the network, deductible, and metal tier that fits their situation and keeps the policy when changing jobs.
- Budget control – Employers set a fixed allowance. Marketplace premiums move predictably, avoiding double-digit renewal shocks common in the group market.
- Simpler compliance – HRAs eliminate participation minimums and most COBRA or Form 5500 obligations, and they are just easier to administer.
Run the Numbers for Your Team
Salusion makes it easy to estimate healthcare costs.
Simply enter an employee’s age, zip code, and annual salary into Salusion’s Cost-of-Insurance Calculator, and instantly see average premiums for Bronze, Silver, and Gold individual plans. The calculator also provides an estimated premium tax credit based on the entered household income, and will also tell you whether a proposed HRA allowance is considered affordable for an ICHRA and a QSEHRA.
