Vermont ranks 8th in healthcare spending: $9,683 per person, 15.36% of income

States spending the most money on healthcare

• Alaska is the state spending the most money on healthcare, with $11,813 per person going toward healthcare each year.
• South Dakota is in second place with $10,881 per person, and North Dakota is in third with $10,494 per person spent on healthcare annually.
• Utah spends the least money on healthcare each year, with only $6,213 per person 

Vermont Business Magazine A new study has revealed the states that spend the most money on healthcare, with Alaska topping the ranking. Alaska was highest in per person spending and very high as a percentage of income. Vermont ranked eighth in spending but was higher in percentage, as of course different states have different income levels. New York and Massachusetts, for instance, spent more, but because their average incomes are higher, they spent a lower percentage. Meanwhile, West Virgina spent slightly more per person than Vermont but over 20.05 percent of income versus Vermont's 15.36 percent. This data does not divide neatly along Red State/Blue State political lines. 

Home health care software Steno Health gathered data from the Bureau of Economic Analysis and the Federal Reserve Economic Data (FRED) to calculate and break down each state’s personal consumption expenditures per capita (per person). They analyzed the findings to rank the states spending the most money on healthcare annually. 

Top 10 States Spending the Most on Healthcare 

Alaskans are spending the most money on healthcare, with a staggering $11,813 per person going toward this cost each year. That is approximately 17.20% of the average income in Alaska. 

Ranking second is South Dakota, where each person spends $10,881 a year on healthcare. This means that 15.96% of the average income in South Dakota is spent on healthcare costs. 

North Dakota ranks third, where $10,494 goes toward healthcare costs per person. On average, 14.91% of a person’s income is spent on healthcare. 

In fourth is Massachusetts, with $10,491 spent on healthcare per year per person. That is 12.41% of the average income in Massachusetts going towards healthcare. 

Delaware ranks fifth, with each person spending $10,301 to cover the cost of healthcare annually. That is 16.30% of the average person’s income spent on healthcare. 

The average New Yorker spends $10,124 a year on healthcare, putting the state in sixth place. This is 13.42% of New York’s average income. 

In West Virginia, $10,030 a year is spent on healthcare per person, putting the state in seventh place. West Virginians see 20.05% of their average income going toward healthcare costs. 

Ranking eighth is Vermont, where each resident spends $9,683 a year on healthcare. This is equivalent to 15.36% of the average person’s income being spent on healthcare. 

Indiana ranks ninth, as each person forks out $9,437 a year to cover the cost of healthcare. Hoosiers are seeing 16.18% of the average income going towards healthcare costs. 

In tenth place is California, where healthcare costs each person $9,335 yearly, meaning 12.12% of the average income is for healthcare alone. 

Alex Milani, co-founder and CEO of Steno Health, said of the findings: “Healthcare costs in the United States are a significant financial burden, with many states seeing a large portion of residents' income spent on medical expenses each year. 

“In states like Alaska, South Dakota, and North Dakota, healthcare costs consume a substantial percentage of household income, reflecting the growing financial strain many Americans face. 

“In some states, the cost of healthcare is so high that it can account for over 20% of a person’s earnings. This trend underscores the ongoing challenge of managing healthcare affordability across the country.” 

Methodology 

The states that spend the most money on healthcare per person were ranked from highest to lowest. 

Healthcare costs per capita were taken from the Bureau of Economic Analysis and per capita personal income from the Federal Reserve Economic Data 2022 (the most recently available data). 

States spending the most money on healthcare - full ranking 

Source: Steno Health, 3.24.2025.

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