The U.S. healthcare system operates differently from many others in the world, characterized by high costs for the individual. In fact, it is because of the higher prices of medications, treatments, and hospital procedures that the U.S. spends more on health care per capita than any other developed country in the world, a 2019 Johns Hopkins report found.
Though expensive, the health care cost is to a large extent covered by the government. In 2019, 29.0% of all health-related spending in the U.S. was paid for by the federal government. A slightly lower share, 28.4%, was paid for by households. State and local governments covered 16.1% of the total cost.
State governments spent $885 billion on health care, or $2,696 per person, in 2018, the latest year for which state and local data is available. Due to different budget priorities and needs, local government health care spending varies considerably by state. Per-capita health care spending ranges from less than $1,100 to more than $3,600.
Minnesota spent $2,436 per capita on its residents’ health in 2018, the 13th highest amount of money of all states.
Minnesota’s health expenditure budget in 2018 totaled $13.8 billion. The state’s health budget covers partial Medicaid coverage, state-run hospitals and university medical schools, and other health expenses and programs addressing needs such as community wellness, substance abuse, health inspection, and pollution control.
In 2018, states allocated between 17% and 39% of their total budgets to health care costs. Minnesota spent 27.7%, the 25th lowest health spending as a share of all state spending.
In every state, the largest portion of overall health care spending is allocated to public welfare programs. Such programs include Medicare and Medicaid, two government-funded health insurance programs that offer coverage to the elderly, the disabled, and people with low incomes.
Minnesota allocated in 2018 95.3% of its health budget to public welfare, the 10th highest share, or $2,321 per capita. States across the country allocate an average of 66.0% of their total health spending, or $1,778 per person, to public welfare programs.
People living with disabilities and those 65 and older are the ones who most commonly need health care and receive state Medicaid spending. Minnesota’s 65 and over adults comprise 16.3% of the state’s population, the 18th lowest share and compared to 16.5% across the U.S. as a whole. About 10.8% of Minnesota’s population have a disability, the fifth lowest share in the country and compared to 12.7% nationwide.
To identify how much each state spends on your health, 24/7 Wall St. reviewed the detailed health care expenditures by state governments provided by the U.S. Census Bureau’s 2018 Annual Survey of State and Local Finances. This is how much the government of every state spends per resident. This is how much the government of every state spends per resident.
| State | State spending on health per capita | Health spending as % of total spending | Population 65 and older | Population with a disability |
|---|---|---|---|---|
| South Dakota | $1,046 | 17.7% | 17.4% | 12.6% |
| Nebraska | $1,203 | 20.9% | 16.1% | 12.0% |
| Georgia | $1,262 | 26.0% | 14.3% | 12.6% |
| Nevada | $1,272 | 22.5% | 16.2% | 12.3% |
| Connecticut | $1,371 | 17.4% | 17.6% | 11.9% |
| Idaho | $1,380 | 23.6% | 16.2% | 13.7% |
| New Hampshire | $1,450 | 22.1% | 18.6% | 13.1% |
| Florida | $1,451 | 32.0% | 20.9% | 13.7% |
| Illinois | $1,504 | 20.6% | 16.1% | 11.5% |
| Texas | $1,509 | 29.0% | 12.9% | 11.5% |
| North Carolina | $1,588 | 27.3% | 16.7% | 13.2% |
| Tennessee | $1,623 | 33.0% | 16.7% | 15.5% |
| Oklahoma | $1,676 | 26.2% | 16.1% | 16.1% |
| Arizona | $1,676 | 29.7% | 18.0% | 13.2% |
| Colorado | $1,680 | 25.8% | 14.7% | 10.6% |
| Utah | $1,712 | 25.1% | 11.4% | 9.3% |
| Wyoming | $1,817 | 16.9% | 17.1% | 13.4% |
| North Dakota | $1,849 | 19.5% | 15.8% | 11.4% |
| Alabama | $1,859 | 26.9% | 17.4% | 15.9% |
| Indiana | $1,894 | 30.6% | 16.1% | 13.5% |
| Michigan | $1,900 | 24.9% | 17.7% | 14.3% |
| Virginia | $1,944 | 29.4% | 15.9% | 12.2% |
| South Carolina | $1,966 | 28.9% | 18.2% | 14.2% |
| Maine | $1,986 | 28.9% | 21.3% | 16.2% |
| Maryland | $2,028 | 26.5% | 15.9% | 11.2% |
| Wisconsin | $2,098 | 29.0% | 17.5% | 11.8% |
| Washington | $2,110 | 27.7% | 15.9% | 12.7% |
| New Jersey | $2,142 | 24.1% | 16.6% | 10.3% |
| Montana | $2,192 | 30.0% | 19.5% | 13.5% |
| Missouri | $2,217 | 38.9% | 17.2% | 14.7% |
| Kansas | $2,257 | 33.6% | 16.4% | 13.5% |
| West Virginia | $2,345 | 27.4% | 20.5% | 19.8% |
| Pennsylvania | $2,370 | 29.6% | 18.7% | 14.0% |
| Oregon | $2,375 | 25.4% | 18.2% | 14.7% |
| Hawaii | $2,401 | 24.9% | 19.0% | 11.9% |
| Vermont | $2,430 | 21.3% | 20.1% | 15.1% |
| Iowa | $2,434 | 32.2% | 17.5% | 11.8% |
| Minnesota | $2,436 | 27.7% | 16.3% | 10.8% |
| Arkansas | $2,522 | 33.8% | 17.4% | 17.5% |
| Ohio | $2,527 | 33.2% | 17.5% | 14.0% |
| Mississippi | $2,561 | 34.9% | 16.4% | 16.8% |
| Louisiana | $2,621 | 34.7% | 16.0% | 15.9% |
| Rhode Island | $2,890 | 32.3% | 17.7% | 13.1% |
| Kentucky | $2,919 | 36.2% | 16.9% | 17.9% |
| Delaware | $2,988 | 29.1% | 19.5% | 13.8% |
| Massachusetts | $3,082 | 31.5% | 17.0% | 11.5% |
| California | $3,109 | 32.7% | 14.8% | 10.6% |
| Alaska | $3,150 | 19.2% | 12.4% | 11.7% |
| New Mexico | $3,405 | 33.3% | 18.0% | 16.0% |
| New York | $3,698 | 33.7% | 16.9% | 11.6% |
