Relative Cost of Coverage
At $854 per month, Vermont’s average Bronze premium is the highest among the 50 states.
Because Vermont’s average premiums are much higher than the U.S. average and incomes are only slightly higher than the U.S. median, the premium represents 12.0% of median household income—higher than the national average of 6.3%.
| Avg Premium | Premium / Household Income | |
| Vermont | $854 | 12.0% |
| United States | $425 | 6.3% |
Variation Within the State
Vermont’s individual market is as uniformly priced as it gets. The average Bronze premium for a 30-year-old sits at $854/month in every county—no county coupons, no local surcharges, no meaningful county-to-county spread.
Because Vermont blends everyone into a single risk pool under the same rate filings, local demographics and claims trends don’t ripple through to premium differences. Whether you live in Burlington (Chittenden), Rutland, or tiny Essex County, your sticker price is identical.
Variation by Age
| Age | Average Bronze | Average Silver | Average Gold |
| 21 | $854 | $1,393 | $1,179 |
| 30 | $854 | $1,393 | $1,179 |
| 40 | $854 | $1,393 | $1,179 |
| 50 | $854 | $1,393 | $1,179 |
| 60 | $854 | $1,393 | $1,179 |
Average premiums for Bronze plans remain flat at $854 across all ages, reflecting Vermont’s pure community rating. Insurers are prohibited from varying rates by age, gender, health status, or other risk factors, so a 21-year-old pays the identical Bronze premium as a 60-year-old. This uniform rate spreads risk evenly across all enrollees but shifts a larger share of costs onto younger people—meaning if your team skews young, Vermont’s individual-market coverage may look relatively less affordable compared with states that allow age-based discounts. Silver and Gold plans follow the same flat structure, costing consistently about 63.1% and 38.0% 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 Vermont, 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 Vermont, 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.
