Study Reveals Where U.S. Healthcare Costs Increased Most in Five Years, Arizona Ranks Ninth

Healthcare costs have risen dramatically across the U.S. over the past five years, but a new study has revealed that some states saw increases nearly double the national average.

Home health care software company Steno Health gathered data from the Bureau of Economic Analysis to calculate and break down each state’s personal healthcare expenditures over a five-year period, revealing substantial regional differences in how quickly medical costs are rising for Americans.

The analysis also revealed significant regional differences in healthcare cost growth. The Southeast and Far West regions experienced the highest increases at 25.5%, slightly above the national average of 21.1%.

The Rocky Mountain region saw costs rise by 20.8%, while the Great Lakes region experienced a 20.6% increase.

In the Plains and the Southwest, healthcare costs grew by 20.2% and 20.1%, respectively, over the period analyzed. Meanwhile, New England and the Mideast recorded the lowest increases, both at 19.9%, just below the national average.

U.S. states with the largest percentage increases in healthcare costs (2019–2023)

Louisiana had the highest percentage increase in five years, with residents seeing their annual healthcare costs jump from $6,928 in 2019 to $9,576 in 2023, a 38.2% increase – the highest in the nation and nearly double the U.S. average growth. The state’s healthcare spending grew by more than $2,600 per person over the five-year period.

Kentucky claims the second spot with a 35.4% increase in healthcare costs – spending rose from $6,991 in 2019 to $9,463 in 2023, an increase of nearly $2,500 per person, just slightly above the national average of $9,195 in 2023.

Utah comes in third with a 29.9% increase in healthcare costs over the five-year period. Residents’ annual spending climbed from $5,259 in 2019 to $6,833 in 2023, but despite this sharp increase, Utah’s absolute spending remains 26% below the national average.

California had the fourth highest percentage increase at 29.6%. Annual healthcare costs per person rose from $8,005 in 2019 to $10,373 in 2023, more than $2,300 per person. California’s healthcare spending now exceeds the national average by 13% (more than $1,100 per person).

In fifth place is Georgia, with a 28.8% increase in healthcare spending. Costs rose from $6,215 annually in 2019 to $8,008 in 2023 – which means the state’s healthcare spending is still 13% below the national average, despite the significant percentage increase.

Nebraska lands in sixth place, with an increase of 27.3% over the five-year period, where residents went from spending $7,518 annually in 2019 to $9,572 in 2023.

Indiana follows, with a 26.8% increase in healthcare costs since 2019. Residents’ spending rose from $8,156 a year in 2019 to $10,342 in 2023, exceeding the national average by 12% (more than $1,000 per person).

Florida and Oklahoma tie for eighth place, both experiencing a 26.6% increase in annual healthcare costs. Florida’s per capita spending grew from $7,107 to $8,996, while Oklahoma’s rose from $6,622 to $8,381 – both below the national average expenditure in 2023.

Arizona comes in ninth, with a 26.0% increase in healthcare costs, rising from $6,303 annually in 2019 to $7,943 in 2023 – a significant increase, but still 14% below the national average.

Tennessee and Illinois tie for tenth place, with 25.2% increases in healthcare costs. Tennessee’s per capita spending rose from $6,584 to $8,244, while Illinois saw costs grow from $7,378 to $9,238, both below the national average.

U.S. states with the lowest percentage increases in healthcare costs (2019–2023)

On the other hand, New Hampshire had the lowest healthcare cost growth in the nation over the analyzed period. The state saw just a 5.4% increase, with residents paying $9,380 a year in 2019 compared to $9,886 in 2023, 8% above the national average expenditure in 2023.

Idaho comes next, with the second-lowest growth rate at a 10.8% increase in healthcare costs. The state’s spending grew from $6,777 a year in 2019 to $7,507 in 2023, 18% below the national average healthcare cost in 2023.

Washington places third, with an increase of 10.9% over the five-year period. Healthcare costs per resident rose from $8,129 in 2019 to $9,013 in 2023, slightly below the national average for that year.

Minnesota and South Dakota tie for the fourth lowest healthcare cost growth, both with 14.2% increases. In Minnesota, annual per-resident healthcare spending rose from $8,618 in 2019 to $9,839 in 2023. South Dakota’s spending increased from $10,083 to $11,511 over the same period, which is 25% higher than the national average healthcare cost in 2023.

Maryland and Montana tie for fifth place, both with an increase of 14.5% over five years. Maryland’s spending grew from $7,717 annually per person in 2019 to $8,838 in 2023, while in Montana costs rose from $7,931 to $9,081.

Alex Milani, medical director at Steno Health, commented on the findings, “This study clearly shows the growing disparity in healthcare cost burdens across different states, with some seeing increases nearly seven times higher than others.

“This is even clearer when we look at Louisiana, where healthcare costs increased by 38.2% in five years, and compare it to New Hampshire’s 5.4% increase, which could mean that local factors strongly impact healthcare costs across the nation.

“It’s also interesting to note that some states have high healthcare costs but not the highest increases. South Dakota, for instance, currently has the highest per-person spending at $11,511 in the ranking, yet places among the states with the lowest percentage increase over the five-year period.

“Despite some regional trends, the data also shows that healthcare cost growth doesn’t always follow a geographic pattern. Washington and Idaho, both in the Far West (one of the regions with the highest average increase), saw some of the lowest cost growth nationally, while Louisiana and Kentucky, also located in high-growth regions, experienced exceptionally sharp increases. This means that state-level dynamics, such as policy decisions, demographics, and healthcare infrastructure, play a decisive role in shaping cost trends across America.

“With healthcare expenses continuing to climb nationwide, there’s a pressing need for innovative approaches to healthcare delivery and cost management in many states, particularly in the South. When healthcare costs rise significantly faster than inflation or wage growth, families face difficult choices between medical care and other essential needs.”