With individual health insurance premiums rising significantly in recent years, the personal-finance website WalletHub today released its report on the States Where People Spend the Most & Least on Health Insurance to shed light on where Americans are struggling the most to stay covered.
To identify where Americans are shelling out the most and least for health insurance, WalletHub analyzed average premiums in each of the 50 states, then compared them to the median household income.
To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/
Key takeaways and WalletHub commentary are included below in text and video format. Feel free to use the provided content as is or edit the raw files as you see fit.
Please let me know if you have any questions or if you would like to arrange a phone, video or in-studio interview with one of WalletHub’s experts.
Best,
Diana Polk
WalletHub Communications Manager
(786) 383-3351
“Inflation has driven up health insurance premiums significantly in recent years, making it harder and harder for Americans to afford proper health care. Being without insurance is even more dangerous, though, as medical debt is one of the most common reasons people file for bankruptcy. People in certain states feel the pressure of high premiums more than others, as they can cost as much as 20% of the median income in some states and as little as 4% in others.”
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“People in Vermont spend the most on health insurance as a percentage of their income. The average Vermonter shells out nearly 20% of their income on health insurance premiums. For comparison, neighboring New Hampshire residents only spend an average of 4% of their income on insurance.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What tips do you have to reduce health insurance costs?
“I’d say my number one tip is to carefully consider the tradeoff between a low premium and a low deductible.”
Melinda J.B. Buntin – Health Economist; Distinguished Professor, Johns Hopkins University
“Make sure to review your options every year during open enrollment, whether through your employer, HealthCare.gov, or your state’s health insurance Marketplace… Premiums, cost-sharing, and plan benefits may change from year to year so just keeping the same plan could mean leaving money on the table or leaving you with unexpected bills. Check to see if you are eligible for Medicaid. Many low-income Americans are eligible for this public health insurance program with no premiums and little to no copays… If you have two adults in the household that have health insurance through work, see if it is better to each be covered under your own employers versus choosing a family plan at one. Some employers are more generous with self only coverage than family while others will actually give you a rebate if you don’t enroll, which could tip the scales in favor of a family plan (particularly if you are covering children too). See if you have ‘free’ money on the table with employer contributions to a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA). Many employers will offer these contributions as incentives to select a higher deductible plan, which gives you funds that you can use towards your deductible and copays… Seek out the help of a health insurance navigator if you are feeling confused about ACA or Medicaid coverage, or your State Health Insurance Assistance Program for help with Medicare. Check your plan directory to make sure new providers are in network.”
Paul Shafer, PhD – Associate Professor; Co-Director, Medicaid Policy Lab, Boston University
How is the current social and economic environment influencing household spending on health insurance?
“There is a lot of uncertainty right now about whether the Trump administration and Congress will cut funding for Medicaid and premium help in the Marketplace (and if so, by how much). The One Big Beautiful Bill Act (BBB) is projected to leave about 11 million more Americans uninsured. This could have a huge impact on affordability of health insurance and health care in the future so if you are getting health insurance through Medicaid, HealthCare.gov, or your state’s health insurance Marketplace, this is definitely something to keep an eye on. Also, inflation has come down from the highs of a few years ago but household budgets are still very tight for many. Health insurance premiums and health care costs tend to grow faster than inflation each year, but not everyone takes advantage of free preventive care available under their plans. Check with your plan and your doctor and see what screenings and other services you might be able to get at no cost to you, that can help avoid health problems and save money down the road.”
Paul Shafer, PhD – Associate Professor; Co-Director, Medicaid Policy Lab, Boston University
To identify where Americans are shelling out the most and least for health insurance, WalletHub analyzed average premiums in each of the 50 states, then compared them to the median household income.
| Highest % of Income Spent | Lowest % of Income Spent | |
| 1. Vermont (19.61%) | 41. Colorado (5.90%) | |
| 2. West Virginia (18.81%) | 42. California (5.84%) | |
| 3. Alaska (13.97%) | 43. New Jersey (5.72%) | |
| 4. Wyoming (13.76%) | 44. Rhode Island (5.61%) | |
| 5. New York (10.87%) | 45. Washington (5.26%) | |
| 6. Mississippi (10.47%) | 46. Massachusetts (4.96%) | |
| 7. South Dakota (10.21%) | 47. Minnesota (4.87%) | |
| 8. Louisiana (10.18%) | 48. Virginia (4.85%) | |
| 9. Alabama (10.12%) | 49. Maryland (4.27%) | |
| 10. New Mexico (9.66%) | 50. New Hampshire (4.02%) |
To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/
Key takeaways and WalletHub commentary are included below in text and video format. Feel free to use the provided content as is or edit the raw files as you see fit.
Please let me know if you have any questions or if you would like to arrange a phone, video or in-studio interview with one of WalletHub’s experts.
Best,
Diana Polk
WalletHub Communications Manager
(786) 383-3351
“Inflation has driven up health insurance premiums significantly in recent years, making it harder and harder for Americans to afford proper health care. Being without insurance is even more dangerous, though, as medical debt is one of the most common reasons people file for bankruptcy. People in certain states feel the pressure of high premiums more than others, as they can cost as much as 20% of the median income in some states and as little as 4% in others.”
–
“People in Vermont spend the most on health insurance as a percentage of their income. The average Vermonter shells out nearly 20% of their income on health insurance premiums. For comparison, neighboring New Hampshire residents only spend an average of 4% of their income on insurance.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What tips do you have to reduce health insurance costs?
“I’d say my number one tip is to carefully consider the tradeoff between a low premium and a low deductible.”
Melinda J.B. Buntin – Health Economist; Distinguished Professor, Johns Hopkins University
“Make sure to review your options every year during open enrollment, whether through your employer, HealthCare.gov, or your state’s health insurance Marketplace… Premiums, cost-sharing, and plan benefits may change from year to year so just keeping the same plan could mean leaving money on the table or leaving you with unexpected bills. Check to see if you are eligible for Medicaid. Many low-income Americans are eligible for this public health insurance program with no premiums and little to no copays… If you have two adults in the household that have health insurance through work, see if it is better to each be covered under your own employers versus choosing a family plan at one. Some employers are more generous with self only coverage than family while others will actually give you a rebate if you don’t enroll, which could tip the scales in favor of a family plan (particularly if you are covering children too). See if you have ‘free’ money on the table with employer contributions to a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA). Many employers will offer these contributions as incentives to select a higher deductible plan, which gives you funds that you can use towards your deductible and copays… Seek out the help of a health insurance navigator if you are feeling confused about ACA or Medicaid coverage, or your State Health Insurance Assistance Program for help with Medicare. Check your plan directory to make sure new providers are in network.”
Paul Shafer, PhD – Associate Professor; Co-Director, Medicaid Policy Lab, Boston University
How is the current social and economic environment influencing household spending on health insurance?
“There is a lot of uncertainty right now about whether the Trump administration and Congress will cut funding for Medicaid and premium help in the Marketplace (and if so, by how much). The One Big Beautiful Bill Act (BBB) is projected to leave about 11 million more Americans uninsured. This could have a huge impact on affordability of health insurance and health care in the future so if you are getting health insurance through Medicaid, HealthCare.gov, or your state’s health insurance Marketplace, this is definitely something to keep an eye on. Also, inflation has come down from the highs of a few years ago but household budgets are still very tight for many. Health insurance premiums and health care costs tend to grow faster than inflation each year, but not everyone takes advantage of free preventive care available under their plans. Check with your plan and your doctor and see what screenings and other services you might be able to get at no cost to you, that can help avoid health problems and save money down the road.”
Paul Shafer, PhD – Associate Professor; Co-Director, Medicaid Policy Lab, Boston University
Money-Saving Health Insurance Tips
- Make sure you have at least some coverage. As expensive as health insurance premiums can be, not having coverage can be far more costly if you experience a major medical emergency. Insurance plans have out-of-pocket maximums that put a hard limit on how much you can owe.
- Budget well. Always include health insurance costs among the first things that you put into your budget, as coverage is essential. Then, set aside additional money each month until you have an emergency fund built that can cover 3-6 months’ worth of expenses. You can dip into your emergency fund when you have big medical expenses and need to pay money toward your deductible.
- Consider high-deductible plans if you’re healthy. Plans with high deductibles tend to have lower monthly premiums. They essentially bank on you not needing much care during an average year. If you don’t have any big medical expenses, they can save you a lot of money. The tradeoff is that if you do have a medical emergency, you’ll have higher out-of-pocket costs than with lower-deductible plans.
- Work at a job that covers your health insurance. Many Americans get their health insurance premiums covered through their employer. If yours doesn’t offer this benefit, you may want to consider switching jobs.
- Stay on your parents’ insurance. Under the Affordable Care Act, young people can stay on their parents’ insurance policies until they’re at least 26 years old.
- Use preventative care. Many insurance plans provide at least some types of preventative care, such as an annual physical exam and certain immunizations and screenings at no additional cost. Taking advantage of these free benefits can also help prevent future medical problems, which is good for both your health and your wallet.
- Opt for in-network providers. Going to an in-network doctor will be much cheaper than one that’s outside your network. Plus, health care plans often have separate out-of-pocket maximums for in-network and out-of-network care.
More From WalletHub
- States Where People Spend the Most & Least on Health Care
- States Where People Spend the Most & Least on Groceries
- States Where People Spend the Most & Least on Housing
- Best & Worst States for Health Care
- Best States to Live In
- States With the Best & Worst Budgeters
- Changes in Inflation by City
- Best & Worst State Economies
- States Where People Have the Highest Income
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