With the average American spending nearly $13,500 per year on health care, the personal-finance website WalletHub today released its report on the States With the Best & Worst Health Care in 2024, as well as expert commentary, to identify where Americans receive the highest-quality services at the best prices.
WalletHub compared the 50 states and the District of Columbia across 44 key measures of health care cost, accessibility and outcomes. The data set ranges from the average monthly insurance premium to physicians per capita to the share of the population with health insurance.
Health Care in New York (1=Best; 25=Avg.):
- Overall Rank: 38th
- 44th – Avg. Monthly Insurance Premium
- 23rd – Hospital Beds per Capita
- 4th – Physicians per Capita
- 29th – Dentists per Capita
- 9th – % of Insured Adults
- 3rd – % of Insured Children
- 24th – % of At-Risk Adults with No Routine Doctor Visit in Past Two Years
- 31st – % of Adults with No Dental Visit in Past Year
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27th – % of Medical Residents Retained
Expert Commentary
What tips do you have for a person looking to find the right balance between the cost of premium and level of coverage?
“Most economists tend to choose health insurance plans with lower premiums and higher deductibles. The reason is that most health insurance plans with low deductibles have premiums that are set "too high." For example, a recent analysis of Kaiser Family Foundation data found that for firms offering both a high-deductible and lower-deductible health plan, 62 percent of the time the high-deductible option actually had less maximum spending risk. For roughly half of the firms in the data, the high-deductible plan was unambiguously the best option for employees. The advice I've developed over the years is to tell people to simply choose the high-deductible plan with the lower monthly premium and set aside the savings each month (i.e., the savings you are generating by not paying the higher monthly premium for the low-deductible plan) and put it into a health savings account or any other type of savings account so that you make sure that you will always have the savings you need to cover your deductible in the event of an illness or injury. As long as you commit to the savings plan, you will always come out ahead financially and you'll avoid overpaying for health insurance each month.”
Matthew Notowidigdo – Professor; Public Policy Fellow, University of Chicago
“Health insurance costs encompass premiums and out-of-pocket (OOP) expenses. OOP expenses consist of two components: deductibles (including copays) and coinsurance. Coinsurance represents the portion of medical expenses the policyholder is responsible for paying after meeting the deductible. For instance, in an 80/20 plan, the insurer covers 80% (the policyholder pays 20%) of the medical costs after the deductible is paid. All else being equal, health insurance plans with higher out-of-pocket (OOP) costs and lower coverage generally have lower premiums, and vice versa. Healthy individuals may find it advantageous to select a plan with lower coverage to reduce their premium costs. Conversely, individuals who anticipate higher medical expenses might benefit from choosing a plan with more extensive coverage to minimize their out-of-pocket costs.”
Charles C. Yang, Ph.D. – Professor, Florida Atlantic University
What are the most important steps Americans can take to minimize health-related expenditures?
“The easiest way is to be healthy! If only it were that easy. Try to avoid behaviors that increase morbidity and mortality in excess (smoking, drinking, etc.), eat healthily (omega-3 and legumes), exercise regularly (gardening, walking, triathlons, etc.), and be social. There is nothing shocking there, we know this. What is best in those categories is going to be on an individual basis. It is something to determine with your primary care physician. Have a primary care physician whom you trust and can discuss the way you can best take control of your health to have a positive and lasting impact. This relationship will also be a great benefit when the unexpected happens, as they will be at the center of your care, treating you and providing referrals. Always ask for an itemized bill from the hospital and do not be afraid to push back on being charged ridiculous prices for ‘emotional support’ or band-aids.”
Michael French – Practitioner in Residence, University of New Haven
“Addressing the rising costs of medical care is a significant challenge. Lowering medical expenses requires collaboration among all stakeholders, including consumers of medical services, insurers, regulators, and policymakers. To reduce healthcare costs, consumers are encouraged to maintain good health, explore more affordable treatment options, and avoid unnecessary medical services. The moral hazard in health insurance leads to increased use and provision of unnecessary medical services. In addition to consumers, insurers, regulators, and policymakers must collaborate to enhance care management processes. Moreover, there is a need to establish a stricter and more comprehensive anti-fraud system to combat healthcare fraud, including instances of insurance exaggerations.”
Charles C. Yang, Ph.D. – Professor, Florida Atlantic University
What are the major issues facing healthcare in 2024?
“One major issue I've been thinking about is how to rebuild the healthcare workforce. In the aftermath of the COVID-19 pandemic, the healthcare workforce shrank substantially. Even during the Great Recession (the biggest recession in my lifetime), the healthcare workforce did not shrink; healthcare employment has always been called ‘recession-proof’, and the COVID-19 recession is the exception that proves the rule. I have estimated that we are still ‘missing’ hundreds of thousands of nurses and other healthcare workers, and we need to find ways to rebuild the healthcare workforce to avoid reductions in quality of healthcare in the US. I think this will require lots of complementary strategies (e.g., increasing pay, rebuilding trust, expanding training, etc.).”
Matthew Notowidigdo – Professor; Public Policy Fellow, University of Chicago
“Cost, quality, and access have had enough said about them, so I will focus on a few others. Employee Burnout: This is especially true of nursing staffs, but all areas of hospitals are dealing with severe burnout, which leads to a lower quality of care and labor shortages. Burnout itself is a medical concern. We ought to consider what it means to have a system that causes medical issues for those who would otherwise provide care. Cybersecurity: Few places have more personal information than hospitals, and hospital systems are already being targeted by ransomware/hackers, such as Prospect Medical Holdings, Hollywood Presbyterian, and Ardent Health Services, among others. Generative AI: Large Language Models designed for medical care are being developed in a variety of areas. The times and use of these will be critical to understanding the future of medical care. The most common area for this is in mental health, where conversation can be critical. There are many potential benefits, such as being able to guide a patient through reframing an issue at 3 a.m. or providing risk assessment, but issues of misinterpretation and computational power will arise.”
Michael French – Practitioner in Residence, University of New Haven