Healthcare Cost by State Calculator

Compare healthcare costs across US states including insurance premiums, deductibles, out-of-pocket maximums, and average medical expenses.

Built by Abiot Y. Derbie, PhD — Postdoctoral Research Fellow. Quantitative researcher specializing in statistical modeling and data-driven decision systems.

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This calculator is for informational and educational purposes only. Results are estimates based on the information you provide and standard financial formulas. This is not financial advice. Consult a qualified financial advisor for decisions specific to your situation. Full Disclaimer

Things to Know

Essential concepts for understanding your results

Variation
How much do healthcare costs vary by state?

Annual healthcare spending per person ranges from $6,500 in Utah to $12,500+ in Alaska — nearly 2x variation. High-cost states (AK, CT, MA, NY, NJ) have higher provider salaries, more expensive facilities, and greater utilization. Lower-cost states (UT, ID, AR, MS) have lower labor costs and less intensive care patterns. Insurance premiums reflect this: a Silver plan for a 40-year-old ranges from $350/month in New Mexico to $700/month in Wyoming.

ACA Marketplace
How do ACA subsidies change the picture?

Premium tax credits make healthcare affordable regardless of state for incomes under ~400% of the federal poverty level. A family of four earning $80,000 pays roughly the same net premium in high-cost Massachusetts as in low-cost Arkansas after subsidies. The subsidy adjusts to local benchmark plan costs. This means the state-level cost variation matters most for out-of-pocket costs (deductibles, copays, coinsurance) and for those above the subsidy threshold.

Cost Drivers
What drives healthcare cost differences between states?

Three primary factors: provider consolidation (states with fewer competing hospital systems have higher prices), labor costs (healthcare worker salaries in NYC are 50-70% higher than in rural Mississippi), and health of the population (states with higher obesity, smoking, and chronic disease rates generate more claims). States with Certificate of Need laws (requiring government permission to build new facilities) tend to have less competition and higher costs.

Healthcare Costs by State: How Much Americans Pay

Healthcare spending in the US varies by up to 2x between the cheapest and most expensive states. These differences affect insurance premiums, out-of-pocket costs, provider charges, and prescription drug prices. Whether you are choosing where to retire, evaluating a job relocation, or simply understanding your costs, state-level healthcare data is essential context.

Per capita health spending by state (CMS National Health Expenditure Data, 2022 latest available):

StatePer Capita Spendingvs National Avg
Alaska$14,800+28%
New York$13,800+20%
Massachusetts$13,700+19%
Connecticut$13,200+15%
New Jersey$12,100+5%
US Average$11,500Baseline
California$10,800-6%
Texas$9,900-14%
Florida$10,400-10%
Georgia$9,200-20%
Utah$7,900-31%

According to CMS (Centers for Medicare & Medicaid Services), the US spent $4.5 trillion on healthcare in 2022 — approximately $13,493 per person and 17.3% of GDP. No other developed country spends more than 12% of GDP on healthcare, making the US an extreme outlier in both total spending and out-of-pocket burden.

ACA Marketplace Premiums by State

For the 16 million Americans purchasing insurance through the ACA marketplace, premiums vary significantly by state, age, and plan level. The benchmark Silver plan (used to calculate subsidies) provides the most meaningful comparison:

StateBenchmark Silver (40-yr-old, 2025)After Avg Subsidy
Wyoming$842/mo$145/mo
West Virginia$787/mo$120/mo
Alaska$730/mo$105/mo
Vermont$702/mo$130/mo
US Median$520/mo$95/mo
Minnesota$380/mo$65/mo
Maryland$395/mo$70/mo
New Hampshire$365/mo$60/mo

Key insight: Subsidies equalize costs for lower-income enrollees. Under the ACA's enhanced subsidies (extended through 2025, pending further extension), a household earning 150% of the Federal Poverty Level ($29,160 for a family of 2 in 2026) pays approximately $0–$50/month regardless of the state's benchmark rate. Subsidies phase out gradually, fully disappearing above 400% FPL ($124,800 family of 4). KFF data shows 87% of marketplace enrollees receive subsidies.

Employer Health Insurance Premiums by State

For the 155 million Americans with employer-sponsored insurance, the Kaiser Family Foundation's annual Employer Health Benefits Survey shows continued premium growth:

2024 national averages (KFF/HRET): Individual coverage: $8,951/year ($746/month total), employee share: $1,368/year ($114/month). Family coverage: $25,572/year ($2,131/month total), employee share: $6,296/year ($525/month).

Premiums have increased approximately 47% over the last decade (2014–2024), while wages grew only 38% and inflation was 31%. The gap means healthcare consumes an increasing share of total compensation — the average employer health benefit is now equivalent to a $8,951 tax-free raise that employees never see in their paycheck.

Deductible trends: The average individual deductible for employer plans is $1,787 (KFF 2024). For workers at small firms: $2,575. For HDHP plans: $2,900. Deductibles have more than doubled since 2010 ($917), meaning employees pay significantly more out-of-pocket before insurance kicks in. Pairing an HDHP with an HSA is the most tax-efficient way to handle these rising deductibles.

Medicare Costs by State

While Medicare Part A (hospital) is premium-free for most retirees, Parts B, D, and supplemental coverage vary significantly:

Medicare Part B (2026): Standard premium approximately $185/month. Higher-income surcharges (IRMAA): income above $106,000 (single) / $212,000 (joint) triggers premiums of $259–$594/month per person. At $500,000+ income: $594/month — 3.2x the standard premium.

Medigap supplemental plans: Plan G (the most popular) ranges from $120–$300/month depending on state, age, and carrier. Florida, Texas, and Midwest states tend to have the lowest Medigap premiums. New York and California tend to be highest.

Total annual Medicare cost for a typical retiree couple (2026): Part B: $4,440 ($185 × 2 × 12). Part D: $960 ($40 × 2 × 12). Medigap Plan G: $4,800 ($200 × 2 × 12). Dental/vision: $1,200. Out-of-pocket: $2,500. Total: approximately $13,900/year — or $1,158/month. This is a significant budget item that many pre-retirees underestimate.

Frequently Asked Questions

Which state has the cheapest healthcare?
Utah ($7,900 per capita), Georgia ($9,200), and Arizona ($9,100) rank among the lowest in total healthcare spending. However, "cheapest" depends on your insurance type: marketplace premiums are cheapest in New Hampshire and Minnesota, employer plans are cheapest in the South, and Medicare supplemental is cheapest in the Midwest. Enter your state above for a comprehensive cost estimate.
How much does the average American spend on healthcare?
$11,500 per person per year (CMS 2022), or approximately $960/month. This includes insurance premiums, out-of-pocket costs, and the employer share of premiums. The employee's direct out-of-pocket share (premiums + deductibles + copays) averages approximately $5,000–$7,000/year for individuals and $10,000–$14,000 for families. Healthcare is the third-largest household expense after housing and transportation.
How much does Medicare cost per month?
Standard Medicare Part B: approximately $185/month (2026). Add Part D drug coverage: $30–$80/month. Add Medigap supplemental: $120–$300/month. Total per person: $335–$565/month. For a couple: $670–$1,130/month. Higher-income retirees pay IRMAA surcharges pushing Part B to $259–$594/month. Budget $12,000–$14,000/year per couple for total Medicare-related costs.
Do ACA subsidies make healthcare affordable?
For many Americans, yes. Under enhanced ACA subsidies (2024–2025), a family of 4 earning $60,000 pays approximately $100–$200/month for a Silver plan. At $40,000 income: $0–$50/month. Subsidies phase out above 400% FPL (~$124,800 for a family of 4). Without subsidies, marketplace premiums are $500–$800/month per person — unaffordable for many. Check Healthcare.gov for your exact subsidy amount.
How much should I budget for healthcare in retirement?
Fidelity estimates a 65-year-old couple retiring in 2024 needs approximately $315,000 for healthcare throughout retirement. Monthly budget: $800–$1,200 for Medicare premiums and supplemental insurance, plus $200–$400 for out-of-pocket costs and prescriptions = $1,000–$1,600/month per couple. Long-term care (not covered by Medicare) could add $100,000–$400,000+ if needed. Fund an HSA during working years for the most tax-efficient healthcare savings.