Michigan Residents Spend Nearly $8K on Healthcare, Burden Holds at 14%!

Healthcare spending rises over five years in the U.S., but takes a smaller slice of salaries in most states – in MI, costs rise nearly 16.4%, but burden holds at 14%!

Healthcare costs have increased by $1,589 (20.9%) in five years, reaching an average of $9,195 per person across the United States.
Despite rising costs, Americans spent 13% of their salary on healthcare in 2023, down from 14% in 2019.
Kentucky and Louisiana are the only states where residents now spend a higher percentage of their income on healthcare compared to five years ago.

A new study by Steno Health reveals that while healthcare costs continue to rise across America, wage growth has actually reduced the financial burden on most households when compared to pre-pandemic levels.

The research analyzed healthcare spending and income data from 2019 through 2023, finding that the average American’s healthcare costs rose by $1,589 over this period – a 20.9% increase. During the same timeframe, the typical salary grew by 24.9%, from $55,567 to $69,418.

Year	Average healthcare cost	Average salary	Percentage of salary spent on healthcare
2019	$7,605	$55,567	14%
2023	$9,195	$69,418	13%
Change	+20.9%	+24.9%	-1 ppt

“The data shows a surprising bright spot in healthcare affordability,” said Alex Milani, medical director at Steno Health. “Though medical costs keep climbing, they’re taking a smaller bite out of the average paycheck.”

Michigan’s findings

In Michigan,

residents went from spending $7,203 on healthcare in 2019 to $8,381 in 2023, a 16.4% increase. Over the same five-year period, the average salary in Michigan rose from $48,577 to $60,865, a 25.3% increase.

This means that healthcare spending as a percentage of income actually decreased, going from 15% in 2019 to 14% in 2023 – a change of 1 percentage point.

Year	Average healthcare cost	Average salary	Percentage of salary spent on healthcare
2019	$7,203	$48,577	15%
2023	$8,381	$60,865	14%
Change	+16.4%	+25.3%	-1 ppt

National findings

The largest improvements in affordability occurred in South Dakota, where the percentage of income spent on healthcare dropped from 19% to 16%, and in Idaho, Montana, Washington, and New Hampshire, all showing a two-percentage point decrease.

While most Americans are spending the same – and sometimes even less – proportion of their salaries in healthcare costs since 2019, two states have seen an increase in the percentage of income dedicated to healthcare.

Kentucky residents now spend 17% of their $55,063 annual salary on healthcare (an average of $9,463 per year), up from 16% in 2019. In Louisiana, the share has risen from 15% to 16%, with residents earning an average of $58,661 and spending $9,576 annually on healthcare.

The states with the highest and the lowest percentage points change in U.S. healthcare spending and salary (2019–2023)

State	Percentage of income spent on healthcare (2019)	Percentage of income spent on healthcare (2023)	Change
South Dakota	19%	16%	-3 ppt
Idaho	15%	13%	-2 ppt
Montana	16%	14%	-2 ppt
Washington	13%	11%	-2 ppt
New Hampshire	15%	13%	-2 ppt
Kentucky	16%	17%	+1 ppt
Louisiana	15%	16%	+1 ppt

Regional analysis reveals significant disparities.

Southern states face the highest burden, with three of the top five states for healthcare spending as a percentage of income located in this region.

West Virginia leads the nation in healthcare spending, with residents allocating 21% of their $52,813 annual income to healthcare ($11,089) – a figure unchanged since 2019.

Close behind is Alaska, where 18% of the average $71,309 salary goes toward healthcare ($13,015 annually) – down 1% from 2019. Delaware, Kentucky, and Indiana follow at 17% each.

Western states generally spend the smallest portion of income on healthcare, with Utah, Washington, and Nevada all at 11%.

States spending the highest and the lowest percentage of their income on healthcare

State	Percentage of income spent on healthcare (2023)	Healthcare cost in 2023
West Virginia	21%	$11,089
Alaska	18%	$13,015
Delaware	17%	$11,091
Kentucky	17%	$9,463
Indiana	17%	$10,342
Utah	11%	$6,833
Nevada	11%	$7,198