A new study highlights the states in which Americans spend the most for their family health insurance policies.
About the Report:
The personal finance site WalletHub recently published a report comparing the average health insurance policy price to the monthly income. To do this, the site looked specifically at silver health insurance plans in all 50 states. Then, these prices were compared to the median monthly income for each state to create a ranking from 1 (where the largest percentage of median income was spent) to 50 (where the lowest percentage of median income was spent).
Topping the list was West Virginia. In the Mountain State, the average consumer spends more than one-fifth (20.86%) of their income on health insurance. Residents of Vermont were not far behind with 19.05%. Rounding out the top five were Wyoming (17.16%), Arkansas (14.87%), and Mississippi (14.05%).
On the other end, Maryland ranked 50th in the report. Those in the Old Line State spend an average of just 4.66% of their income on health insurance. That means that those in West Virginia spend more than four times as much as those in neighboring Maryland. Similarly, while Vermont was the second most expensive, New Hampshire (the state next door) was the second-lowest at 4.77%. Massachusetts (5.49%), Virginia (5.86%), and Minnesota (5.89%) were also near the bottom.
Looking more closely at the report, the average silver plan in West Virginia was found to be $1,036 compared to a median household income of $59,608 (the second-lowest). Meanwhile, Vermont has the highest average silver plan price at $1,289, which partially offset their relatively-high median income of $81,203.
What They’re Saying:
Discussing the state of health insurance, WalletHub writer and analyst Chip Lupo noted, “Inflation has driven up health insurance premiums significantly in recent years, making it harder and harder for Americans to afford proper health care. Being without insurance is even more dangerous, though, as medical debt is one of the most common reasons people file for bankruptcy.”
Lupo added, “People in certain states feel the pressure of high premiums more than others, as they can cost as much as 21% of the median income in some states and less than 5% in others.”
My Thoughts:
Even if comparing the average plan premium to median income isn’t a perfect measurement, it is clear that those in neighboring states could be paying wildly different amounts of their money to maintain a health insurance policy. Of course, there are several other factors that impact how much consumers are actually paying out of pocket, including employer-sponsored plans, Affordable Care Act subsidies, and more.
If nothing else, though, this report shows how health insurance premiums are on the rise and are impacting Americans’ wallets. Hopefully, through one of the aforementioned means, consumers can find some relief rather than spending the majority of their paychecks on coverage.
