Healthcare Costs Are Soaring. Is Your State Among the Hardest Hit?

Healthcare costs have been climbing steadily across the United States, but just how steep the increases are depends heavily on where you live. According to recent data from the Bureau of Economic Analysis, the average American saw personal healthcare expenses rise by 20.9 percent over the last five years. In some states, however, the increase was far higher.

At Umbra Health Advocacy, we track trends that impact healthcare consumers and families. If you are struggling to keep up with medical expenses, here is what the data shows and what you can do about it.

States with the Highest Increases in Healthcare Costs

The state with the sharpest cost increase was Louisiana, where per-person healthcare expenses jumped 38.2 percent from $6,928 in 2019 to $9,576 in 2023. That represents a $2,648 increase per resident.

Other states with significant increases include:

• Kentucky: up 35.4 percent (from $6,991 to $9,463)
• Utah: up 29.9 percent (from $5,259 to $6,833)
• California: up 29.6 percent (from $8,005 to $10,373)
• Georgia: up 28.8 percent (from $6,215 to $8,008)

These numbers reflect more than inflation. They may be driven by higher provider fees, increased insurance premiums, or the growing use of high-cost services. For families living in these states, the rapid rise in expenses can put serious pressure on their budgets and healthcare decisions.

States with the Lowest Increases in Healthcare Costs

Some states have managed to keep healthcare cost increases relatively low over the past five years. These include:

• New Hampshire: up just 5.4 percent (from $9,380 to $9,886)
• Idaho: up 10.8 percent (from $6,777 to $7,507)
• Washington: up 10.9 percent (from $8,129 to $9,013)
• Minnesota and South Dakota: both up 14.2 percent
• Maryland and Montana: both up 14.5 percent

Notably, South Dakota has one of the highest healthcare costs in the country at $11,511 per person in 2023, but it also had one of the lowest growth rates during this period.

What You Can Do to Reduce Health Costs

If you are concerned about how to keep your medical costs manageable, here are some tips to help reduce expenses without sacrificing care:

1. Review your health insurance annually
Compare plans during open enrollment and ensure you are not overpaying for coverage you do not need. Look closely at premiums, deductibles, and out-of-network restrictions. If you never spend your full deductible every year, consider bumping up to the higher deductible plan. You will save on premiums and can put the difference aside to pay the deductible.

2. Ask for cash-pay prices or discounts
Some providers offer lower rates if you pay out of pocket or in cash, especially for lab work or imaging.

3. Use urgent care wisely
Avoid emergency rooms for non-emergency situations. Urgent care centers or telehealth can save you hundreds of dollars per visit.

4. Double-check medical bills
Errors are common in healthcare billing. Request itemized bills and dispute any questionable charges.

5. Use generic medications
Always ask your provider or pharmacist if a generic or lower-cost alternative is available.

6. Take advantage of preventive care
Many health plans cover preventive services at no cost to you. Use annual checkups, screenings, and immunizations to catch problems early.

7. Work with a health advocate
Patient advocates can help you appeal insurance denials, reduce out-of-pocket costs, and negotiate medical bills. Fill out a Help Request to get matched to patient advocate.

Source: Bureau of Economic Analysis, 2019–2023 State-Level Personal Healthcare Expenditures
For complete data by state, visit the Bureau of Economic Analysis.