Most and least expensive states for out-of-pocket healthcare spending

In a new state-by-state analysis of patient spending on healthcare, Utah, Virginia and California are at one end of the “spend the most” vs. “spend the least” rankings. Alaska, Oregon and Maine land at the other. Can you guess which trio’s residents spend the most and which the least?

Time’s up. Alaska takes the undesirable No. 1 pole position: It’s the most expensive state for people who have to pay out of pocket. On average they shell out 10.1% of the median monthly household income to pay for essential medical services and prescriptions. 

Spending the least are residents of Utah, where wallets only take a hit of 5.11%.

The calculations are from WalletHub, which released a report on the topic May 28. 

The company names several reasons why Alaskans take healthcare spending on the chin. 

For starters, care services and commodities are “consistently expensive” in the Last Frontier State. It’s the most costly state for doctor visits and the second most expensive for dentists. It’s also the state that would set you back the most for OTC drugs like ibuprofen.

“Alaska has the 12th-highest median income in the country, so earnings are less of a factor here,” WalletHub financial writer Adam McCann reports. “Instead, residents face some of the nation’s highest healthcare prices, which pushes overall spending above other states.”

In the Beaver State, high earnings meet high prices   

Among the variables WalletHub weighed to compile the rankings were state-by-state costs of doctor, dentist and optometrist visits as well as the prices of ibuprofen (one of the top over-the-counter drugs in the U.S.) and Lipitor (the most widely taken prescription drug).

The analysts also used data from the Council for Community and Economic Research and the U.S. Census Bureau.

In Alaska’s immediate runner-up, Oregon, around 9.3% of the median monthly household income goes toward necessary medical visits and medications, WalletHub found. 

“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,” McCann writes. 

Maine hit by both high care costs and low average income

Similarly, Mainers pay out 9.3% of the median monthly household income for key medical services and medicine. 

However, unlike Alaska and Oregon, the state best known for its lobsters has a low median household income, $74,733 per year. That’s the 19th-lowest average in the country, WalletHub notes.

“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,” McCann reports. 

“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.”

The best—or worst—of the rest 

Rounding out the top 10 priciest states for out-of-pocket care expenses are, in order from No. 4 to No. 10,  Mississippi, West Virginia, New Mexico, North Carolina, Montana, South Dakota and Louisiana. 

At the other end of the scale, falling in behind Utah, Virginia and California, are New Jersey, Nevada, Colorado, Florida, Rhode Island, Minnesota and South Carolina.

For WalletHub’s full report, click here.