The average healthcare cost has steadily risen in the United States for the past 59 years. In 2019, costs are projected to continue to increase. Below, we’ll explore average healthcare costs by care type, payer, state, gender, and age to give you an idea of where healthcare is headed in 2019 and beyond.
Quick Facts on the Cost of Healthcare
- Amount of money Americans spent on personal healthcare in 2017: $2.96 trillion
- Projected personal healthcare costs in 2019: $3.24 trillion
- The estimated amount of money Americans borrowed for healthcare expenses in 2018: $88 billion
- State with the highest per capita health expenditures: Alaska
- Percent of the population with health insurance in 2018: 91%
Healthcare Costs in 2019
2019 isn’t over yet, but the Centers for Medicare and Medicaid project costs will continue to rise compared to prior years. National personal healthcare costs in 2019 are expected to reach $3.24 trillion. National health expenditures, which includes money spent on healthcare and health-related activities like research, is expected to reach $3.82 trillion.
The chart below breaks down these projected numbers by type of expenditure and payer, giving you an idea of the average healthcare costs in 2019. To see an explanation of each category, read their brief definitions here.
2019 Projected National Personal Healthcare Expenditures (Millions)
| Total | |
|---|---|
| National Health | $3,823,071 |
| Personal Health Care | $3,242,500 |
| Hospital Care | $1,254,681 |
| Physician & Clinical Services | $767,598 |
| Dental Services | $139,900 |
| Other Prof. Services | $106,150 |
| Home Healthcare | $108,793 |
| Nursing & Retirement Communities | $177,995 |
| Prescription Drugs | $360,309 |
| Durable Medical Equipment | $60,882 |
Source: NHE Historical and Projections 1960-2027 (CMS.gov)
Here are some insights about the data displayed in the above chart:
- 7% of all personal healthcare costs go toward hospital service expenditures, 23.7% goes to physician and clinical services, and 11% goes toward prescription drugs
- Other non-durable medical products like non-prescription drugs and bandages is the largest out-of-pocket expense for Americans.
- Private health insurance growth is expected to slow in 2019 as enrollment is expected to decline due to the repeal of the individual health insurance mandate
- Out-of-pocket expenses will increase by an estimated 4.8% in 2019 since fewer people will have private insurance coverage. These expenses make up approximately 12% of total personal healthcare expenditures.
- Prescription drug expenditures are expected to grow in 2019 by 4.6% due to anticipated increases in drug price and drug utilization
Personal Healthcare Expenditures Over Time
Personal healthcare expenditures include out-of-pocket costs and insurance premiums. From 1960 until 2017, total personal healthcare expenditures steadily increased. Looking toward the future, Centers for Medicare & Medicaid Services, which oversees the National Health Expenditure Data, projects costs to continue to rise.
The graph below shows the total personal healthcare expenditures in millions from 2000 to 2027. Years 2000 to 2017 are historical costs while the years 2018 to 2027 are projected costs.
Personal Healthcare Expenditures Historical and Projected in Millions, 2000-2027
| Year | Total |
|---|---|
| 2000 | $1,161,528 |
| 2001 | $1,261,408 |
| 2002 | $1,367,133 |
| 2003 | $1,477,201 |
| 2004 | $1,587,492 |
| 2005 | $1,695,738 |
| 2006 | $1,804,295 |
| 2007 | $1,918,445 |
| 2008 | $2,010,669 |
| 2009 | $2,114,636 |
| 2010 | $2,196,088 |
| 2011 | $2,274,105 |
| 2012 | $2,,367,358 |
| 2013 | $2,437,977 |
| 2014 | $2,561,494 |
| 2015 | $2,717,754 |
| 2016 | $2,851,920 |
| 2017 | $2,961,006 |
| 2018 | $3,085,300 |
| 2019 | $3,242,500 |
| 2020 | $3,412,600 |
| 2021 | $3,601,500 |
| 2022 | $3,811,100 |
| 2023 | $4,037,800 |
| 2024 | $4,278,200 |
| 2025 | $4,531,000 |
| 2026 | $4,792,700 |
| 2027 | $5,058,400 |
Source: National Health Expenditures By Type Of Service And Source Of Funds, CY 1960-2017 & NHE Projections 2018-2027 Table 5
From 2018 to 2027, personal healthcare costs are expected to grow at an average annual rate of 5.64%. The personal cost of healthcare in 2019 is projected to hit an all-time high of 3.24 trillion, a 5.1% increase from the projected 2018 costs. The projected increase from 2018 to 2019 is in part due to the expanded eligibility for Medicaid in five states (Idaho, Maine, Nebraska, Utah, and Virginia).
Increases are expected from 2020 to 2027 as well. These year-over-year increases are attributed to a projected 2.7% per year increase in personal healthcare prices along with projected high utilization growth (more people needing and/or spending more on personal medical care).
Average Healthcare Cost by State
Looking at national expenditures only gives you part of the picture. Healthcare costs vary widely between states. A lot of factors are in play like access to medical care, the average age of residents, and relevant state laws.
The chart below shows the average dollar amount spent per capita by state in 2014. This is the most recent year that state-specific National Health Expenditure data was made available.
Average Yearly Personal Healthcare Costs Per Capita By State of Residence in 2014 (Dollars)
| State of Residence | 2014 |
|---|---|
| United States | $8,045 |
| Connecticut | $9,859 |
| Maine | $9,531 |
| Massachusetts | $10,559 |
| New Hampshire | $9,589 |
| Rhode Island | $9,551 |
| Vermont | $10,190 |
| Delaware | $10,254 |
| District of Columbia | $11,944 |
| Maryland | $8,602 |
| New Jersey | $8,859 |
| New York | $9,778 |
| Pennsylvania | $9,258 |
| Illinois | $8,262 |
| Indiana | $8,300 |
| Michigan | $8,055 |
| Ohio | $8,712 |
| Wisconsin | $8,702 |
| Iowa | $8,200 |
| Kansas | $7,651 |
| Minnesota | $8,871 |
| Missouri | $8,107 |
| Nebraska | $8,412 |
| North Dakota | $9,851 |
| South Dakota | $8,933 |
| Alabama | $7,281 |
| Arkansas | $7,408 |
| Florida | $8,076 |
| Georgia | $6,587 |
| Kentucky | $8,004 |
| Louisiana | $7,815 |
| Mississippi | $7,646 |
| North Carolina | $7,264 |
| South Carolina | $7,311 |
| Tennessee | $7,372 |
| Virginia | $7,556 |
| West Virginia | $9,462 |
| Arizona | $6,452 |
| New Mexico | $7,214 |
| Oklahoma | $7,627 |
| Texas | $6,998 |
| Colorado | $6,804 |
| Idaho | $6,972 |
| Montana | $8,221 |
| Utah | $5,982 |
| Wyoming | $8,320 |
| Alaska | $11,064 |
| California | $7,549 |
| Hawaaii | $7,299 |
| Nevada | $6,714 |
| Oregon | $8,044 |
| Washington | $7,913 |
Source: Health Expenditures by State of Residence Summary Tables, 1991-2014 Table 11
Unsurprisingly, residents of the most “remote” state in the U.S., Alaska, pay more each year for healthcare costs. The only exception is our nation’s capital. In 2014, Alaskans paid an average of $11,064 on personal healthcare. That’s 38% higher than that national average that year of $8,045. By contrast, Utah residents had the lowest per capita personal healthcare spending during that same year—only $5,982.
New England residents, which includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, paid more than Americans from any other region. Their average per-capita healthcare costs were $10,119, which is 25.77% more than the U.S. average.
The cheapest region for personal healthcare costs is the Rocky Mountains, which includes Colorado, Idaho, Montana, Utah, and Wyoming. The average cost is just $6,814—15.3% lower than the national average.
To see more specifics about the state you live in, visit the Henry J Kaiser Family Foundations State Health Facts. Choose your state from an interactive map to see information about healthcare costs and budgets, demographics, health insurance, health reform, Medicaid, and more.
Average Healthcare Costs by Gender and Age
Gender and age influence how much you’ll spend on personal healthcare too.
Total Personal Health Care Per-Capita Spending by Gender and Age Group in Dollars, 2002-2014
| 2002 | 2004 | 2006 | 2008 | 2010 | 2012 | 2014 | |
|---|---|---|---|---|---|---|---|
| All Males | 4,142 | $4,737 | $5,309 | $5,842 | $6,340 | $6,783 | $7,273 |
| 0-18 | $2,087 | $2,483 | $2,832 | $3,119 | $3,407 | $3,677 | $3,900 |
| 19-64 | $3,603 | $4,109 | $4,628 | $5,047 | $5,473 | $5,841 | $6,334 |
| 19-44 | $2,092 | $2,400 | $2,674 | $2,908 | $3,135 | $3,373 | $3,711 |
| 45-64 | $6,128 | $6,783 | $7,500 | $8,049 | $8,669 | $9,217 | $9,945 |
| 65+ | $12,861 | $14,326 | $15,544 | $16,868 | $17,775 | $18,156 | $18,331 |
| 65-84 | $12,019 | $13,343 | $14,507 | $15,582 | $16,407 | $16,777 | $16,959 |
| 84+ | $21,757 | $24,291 | $25,358 | $28,516 | $29,614 | $29,974 | $30,216 |
| 2002 | 2004 | 2006 | 2008 | 2010 | 2012 | 2014 | |
|---|---|---|---|---|---|---|---|
| All Females | $5,353 | $6,095 | $6,774 | $7,374 | $7,851 | $8,299 | $8,811 |
| 0-18 | $1,949 | $2,302 | $2,648 | $2,913 | $3,177 | $3,391 | $3,591 |
| 19-64 | $4,785 | $5,476 | $6,111 | $6,610 | $7,033 | $7,404 | $7,962 |
| 19-44 | $3,462 | $4,013 | $4,501 | $4,922 | $5,207 | $5,551 | $6,020 |
| 45-64 | $6,861 | $7,630 | $8,343 | $8,852 | $9,384 | $9,786 | $10,466 |
| 65+ | $14,005 | $15,649 | $17,034 | $18,385 | $19,061 | $19,562 | $19,700 |
| 65-84 | $12,063 | $13,351 | $14,457 | $15,695 | $16,277 | $16,783 | $16,992 |
| 84+ | $25,168 | $28,627 | $30,971 | $32,589 | $33,434 | $34,071 | $34,300 |
Source: Age and Gender Tables Table 7 (CMS.gov)
In general, women spend more, and all people spend more as they age. Centers for Medicare & Medicaid Services found that women in the U.S. collectively spent $1.4 trillion on personal healthcare in 2014. That was 56% of total personal healthcare spending. Men collectively spent more than $1.1 trillion. Overall per-capita spending for women in 2014 was $8,811 while for men it was only $7,273, meaning women spent 21% more.
Women out-spent men in every age group except for ages 0 to 18. This is the only age group where men out-spent women at each documented year interval. Women in the 19 to 44 age group out-spent men the most—spending 62% more. They spent $6,020 in 2014 while men only spent $3,711. The difference is associated with the high costs of maternity care.
Personal healthcare costs also increase with age regardless of gender. These increases are associated with the wear your body and mind go through as you age. Nursing care services, continuing care retirement communities, and home healthcare spending is the biggest reason for the increased spending for the 65+ age range.
The Effect of Rising Average Healthcare Costs in 2019
The cost of healthcare in 2019 is more than just numbers. In May 2019, a study done by the American Cancer Society found that within the last year, approximately 137 million adults in the U.S. experienced at least one financial struggle as a result of medical expenses.
In March 2019, West Health and Gallup released the U.S. Healthcare Cost Crisis report, which examines how healthcare costs impact personal finance and healthcare choices.
Here are some of the main findings:
- Americans borrowed a collective $88 billion for medical expenses in 2018
- Approximately 3 million borrowers took out $10,000 or more
- Forty-five percent of U.S. adults are concerned that a major health event could cause them to go bankrupt
- One in four Americans admitted to skipping a recommended medical treatment in the past year because of the price
- 15 million Americans put off purchasing prescription drugs in the past year because of the price
