These states are spending the most on health insurance, study shows

RFK Jr. announces health insurance reforms

Health insurance reform is coming from the Trump administration. Health and Human Services Secretary Robert F. Kennedy Jr. discusses these changes to to US health insurance.

Although health insurance prices are rising all over the country, certain states are much more expensive than others. 

To identify where Americans are shelling out the most and least for health insurance, financial company WalletHub analyzed the average premiums for a silver health insurance plan (which has a moderate deductible but fairly low premiums) in each of the 50 states, then compared it to the median household income.

Vermont residents spend the most on health insurance

By the numbers:

The study found that people in Vermont spent the most on health insurance as a percentage of their income. The average Vermonter shelled out nearly 20% of their income on health insurance premiums. For comparison, residents of neighboring New Hampshire only spent an average of 4% of their income on insurance, according to the data.

Vermont had the 19th-highest median household income in the country, at $78,024. However, the average monthly health care premium (for a silver plan) in the state was $1,275, the highest in the country, so people ended up spending a disproportionate amount of their income on insurance.

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Vermont was followed by West Virginia and Alaska, with West Virginians spending an average of $908 and Alaska residents spending $1,040.

What they're saying:

"Inflation has driven up health insurance premiums significantly in recent years, making it harder and harder for Americans to afford proper health care," Chip Lupo, a WalletHub analyst, said in a statement. "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."

Where people spend the most and least on health insurance

Health insurance premiums soar

Dig deeper:

According to the study, health insurance premiums have gone up a lot in recent years, rising by 6% for individual plans and 7% for family plans just in 2024. 

Insurance premiums can cost as much as 20% of the median monthly household income in the most expensive states, but just 4% in the least expensive states.

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