New Jersey may rank near the top of the nation in terms of the cost of car insurance and property taxes, but the state is near the bottom in out-of-pocket health care expenses, according to a report from personal-finance website WalletHub.
The average cost of health care as a percentage of median monthly household income in New Jersey was 9.40%. Only Maryland, at 9.03%, was lower. Both states rank near the top in annual surveys of states with the highest median household income.
To create its list, WalletHub analyzed the prices of five key health care components in each of the 50 states, then added these costs together and compared them to the median household income. WalletHub analyzed the prices of the costs of doctor, dentist and optometrist visits, plus the prices of ibuprofen and lipitor, across the 50 states. WalletHub summed up the individual costs of the components and adjusted the resulting figure to the median monthly income in each state, then used these results to rank-order its sample.
The average annual out-of-pocket cost of health care in New Jersey was $791.59. Health care has become progressively more expensive in the U.S., with Americans’ average yearly out of pocket health care costs climbing to $1,425 from $763 over the past two decades.
Among its findings, WalletHub said N.J. was 43rd in average price of a doctor visit; 31st in average price of an optometrist visit; 30th in average price of Lipitor; and 17th in average price of a dentist visit.
“Sharp increases in health care costs in recent years have made it difficult for some people to seek essential care,” said Chip Lupo, WalletHub analyst. “Even in states with lower-than-average health care prices, residents’ incomes may not be enough to keep up with the cost, especially since virtually every part of Americans’ budgets have been impacted by inflation over the past few years.”
The five states that pay the most as a share of median monthly household income are all southern states: Mississippi (18.6%); Louisiana (17.82%); West Virginia (16.24%); Arkansas (16.23%); and Oklahoma (16.11%). Those states annually rank in the bottom 10 in median household income.
