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Study: Michigan Residents Spend Nearly 20% of Monthly Income on Healthcare

New analysis shows Michigan above national average for healthcare cost burden

A new study shows that Michigan residents are spending nearly one-fifth of their monthly income on healthcare, placing the state among the highest in the nation for healthcare cost burden.

According to data analyzed by Beca Life from the U.S. Bureau of Economic Analysis (BEA), the average Michigan resident earns $5,268 per month and spends about $1,027 on healthcare expenses. That amounts to 19.5% of monthly income, well above the national average of 17%.

Michigan ranks 8th among all 50 states for the highest percentage of income spent on healthcare.

At the top of the list is West Virginia, where residents spend 25.1% of their monthly income on healthcare—the highest rate in the country. Other high-cost states include Kentucky (21.6%), Louisiana (21.0%), and North Dakota (19.9%).

In contrast, residents in several western states face a much lower burden. Wyoming (12.7%), Colorado (12.8%), Washington (13.2%), and Utah (13.5%) have the lowest percentage of income going toward healthcare, offering what the study calls the best healthcare value in the U.S.

“These stark differences in healthcare affordability show how Americans’ financial health varies dramatically depending on where they live,” said Yehuda Tropper, CEO of Beca Life. “Healthcare spending isn’t just about the price of services—it’s also about how those costs compare to what people earn.”

The analysis matches recent data from the Centers for Medicare and Medicaid Services (CMS), which reported total U.S. healthcare spending rose to $4.9 trillion in 2023—$14,570 per person—accounting for 17.6% of the national GDP.

Michigan’s figures place it in line with nearby states like Indiana (19.6%) and Ohio (18.5%), though neighboring Wisconsin (17.4%) falls closer to the national average.