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You always can find something cheaper than that! You may want something more expensive for the kids, but for healthy adults you can pretty easy get away with like $300-350 for both -- use sites like ehealthinsurance and others -- they can do comparison for you. Of course, if you have some medical conditions/etc. - that can be an issue, as then the cost of insurance will be sky high.

After all, yes, health insurance IS expensive, but you can find the cheaper options. But well, the same way you can think about your rent, groceries, etc. You have to have them, and you have to pay for that.