States Where People Spend the Most & Least on Health Care

Health care costs in the U.S. have steadily increased over time. For instance, Americans’ average annual out-of-pocket health care spending has risen from $811 to $1,514 over the past two decades, outpacing inflation.

To identify where residents spend the largest share of their income on health care, WalletHub analyzed the prices of five key health care components across all 50 states, then combined those costs and compared them with each state’s median household income.

“Sharp increases in health care costs in recent years have made it difficult for some people to seek essential care. Even in states with lower-than-average health care prices, residents’ incomes may not be enough to keep up with the cost, especially since virtually every part of Americans’ budgets have been impacted by inflation over the past few years.”

Chip Lupo, WalletHub Analyst

Knowing how to budget well is important for making sure you’re not caught off guard by health care costs. If you’re not able to build a sufficient emergency fund, sudden big medical bills can throw your finances into disarray, even if you have decent insurance. Regardless of budgeting skills, though, some people will need to pay more for health care just because of where they live.

Main Findings

States That Spend the Most & Least on Health Care

Note: *No. 1= Highest Spending

In-Depth Look at the States That Spend the Most

Alaska

People in Alaska spend the most on health care, with essential medical visits and medicine costing as much as 10.1% of the median monthly household income, the highest percentage in the country. For comparison, Utah residents only spend around 5% of their income for the same services and medicines, the lowest percentage.

Health care services and commodities are consistently expensive in Alaska. For example, it’s the second-most expensive state for a dentist visit and the most expensive for a doctor visit. When it comes to medication, it’s the 25th-most expensive state for Lipitor and the most expensive for ibuprofen.

The biggest contributor to why people in Alaska spend the most on health care is the state’s high cost of medical services and commodities. Alaska has the 12th-highest median income in the country, so earnings are less of a factor here. Instead, residents face some of the nation’s highest health care prices, which pushes overall spending above other states.

Oregon

Oregonians spend the second-most money on health care, with approximately 9.3% of the median monthly household income going toward necessary medical visits and medications. This is less about income pressure, as Oregon has the 18th-highest median household income in the country at $83,011, suggesting costs are driven more by high prices than low earnings.

In addition, there are a few major categories of health care expenses that are costlier in Oregon than in most other states. For example, it has the second-most expensive doctor’s visit prices and the fourth-most expensive optometrist.

On the other hand, Oregon has the fifth-cheapest prices for Lipitor. It also ranks as only the 27th-most expensive state for dentist visits.

Maine

Maine residents spend the third-most money on health care relative to what they earn, paying out 9.3% of the median monthly household income for key medical services and medicine.

Unlike the other expensive states, Maine has a low median household income, at $74,733 per year. That’s the 19th-lowest average in the country. Maine also has high prices for certain types of medical examinations, with the seventh-most expensive optometrist visits and the sixth-most expensive doctor visits.

Additionally, Maine is also relatively expensive for dentist visits, ranking as the 13th-most expensive state. The state posts high medication costs as well, ranking among the pricier states for purchasing ibuprofen.

Ask the Experts

WalletHub turned to a panel of experts for additional advice on spending and budgeting when it comes to heath care. Click on the experts below to read their bios and see their responses to the following key questions:

1. What tips do you have to reduce health care costs?
2. How important is budgeting when it comes to saving money on health care?
3. How is the current social and economic environment influencing household spending on health care?

Ask the Experts

Scott Thorne
Ph.D., Instructor, Department of Marketing - Southeast Missouri State University
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David G. Wolf
Ph.D., MBA, MSJ, MSOL, Certified Fellow Emeritus - American College of Health Care Administrators, Academic Chair for Planning and Accreditation, Professor & Program Coordinator, Healthcare Management, Lynn University
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Jeff Helton
Ph.D., CMA, CFE, FHFMA, NREMT, Academic Director - Health Administration Programs - CU Denver Business School
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Michael J. Malinowski
Ernest R. and Iris M. Eldred Professor of Law, and Lawrence B. Sandoz, Jr. Professor of Law, Paul M. Herbert Law Center, Louisiana State University
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Patrick Bernet
Associate Professor, Management Programs – Health Administration - Florida Atlantic University, College of Business
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Mark Kato
DHA, MBA, Assistant Professor of Health Sciences - Saginaw Valley State University
Read More

More Experts

7 Tips for Saving on Health Care

• Get insured. It is much better for your wallet to be insured than uninsured. While health insurance premiums can be expensive, being insured protects you from extremely expensive events like hospitalizations or surgeries because you’ll only have to pay a certain maximum amount out of pocket. Without insurance, you’re on the hook for every dollar your care costs.
• Use preventative care. You should use preventative medical care every year – for example, getting an annual physical and having dental checkups every six months. This can help you prevent health issues from happening or catch them before they become serious. The cost for these services will be miniscule (or sometimes even $0 with insurance) compared to treating health conditions that you could have avoided.
• Budget carefully. You should always consider health care costs when you make a budget. Not only should you make sure to budget money for insurance premiums, but you should also set aside money each month until you have an emergency fund that can cover at least six months’ worth of expenses. That can help provide a buffer in case you get hit with major medical bills unexpectedly.
• Try to lead a healthy lifestyle. As they say, an apple a day keeps the doctor away. Pairing a nutritious diet with regular exercise can help you stay in good health and leave your body less vulnerable to sickness. The healthier you are, the less you’ll have to spend on health care.
• Try telehealth. It’s becoming more and more common to have virtual visits with doctors. These visits may be less expensive than going to the doctor in person, although they may not be the best fit for all medical situations.
• Use an HSA. With a health savings account, you can put aside pre-tax dollars from your payroll to use for health care. That lowers your taxable income, which leads to savings at tax time. In addition, contributions you make outside of your payroll are also tax deductible.
• Use a rewards credit card. If you pay for your medical bills with a rewards credit card, you can earn back a portion of the cost. Just make sure to pay off the card in full every month, or you’ll undo all your savings with costly interest.

Methodology

In order to determine the states that spend the most and least on health care, WalletHub analyzed the prices of five components, including the costs of doctor, dentist and optometrist visits, plus the prices of ibuprofen and Lipitor, across the 50 states.

We summed up the individual costs of the components and adjusted the resulting figure to the median monthly income in each state, then used these results to rank-order our sample.

For simplicity, we considered the acquisition of only one unit of each component included in our calculation.

 
Sources: Data used to create this ranking were collected as of April 30, 2026 from the Council for Community and Economic Research and the U.S. Census Bureau.

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