Best US States To Retire In With Low Healthcare Costs

Healthcare is one of the most common sources of stress for Americans, and it’s no wonder, given how high the costs of both health insurance premiums and out of pocket healthcare expenses have grown.

Nearly half of Americans reported delaying or doing without medical care in 2021 due to being unable to afford the costs, according to a survey by the Kaiser Family Foundation.

Those who stress about healthcare costs are not just the uninsured, either; the same survey found that almost one-third of insured adults also have anxiety about being able to pay for their monthly health insurance, and another 44% worry about whether they will be able to afford their deductible.

Considering that healthcare costs have such a major impact on Americans’ finances, GOBankingRates set out to see which states have the most — and least — affordable healthcare, making them good places for older folks to retire. The study analyzed data from Missouri Economic Research and Information Center on annual healthcare costs in all 50 states. GOBankingRates also factored in average annual prescription costs sourced from Kaiser Family Foundation Prescription Sales, total medical expenditures sourced from Kaiser Family Foundation Health Care Expenditures, the median home value from Zillow’s Home Value Index, and the average cost of healthcare for people age 65 and older.

The following list is organized from least to most expensive annual healthcare costs.

• Prescription Sales:  $8,031,816,317
• Health Cost of living: 81.8
• Annual Health Cost:  $5,750.54
• 2023 Home Value:  $192,080.63

• Total expenditures:  $45.7 billion
• Prescription Sales:  $7,595,065,062 
• Health Cost of living: 86.9 
• Annual Health Cost:  $6,109.07
• 2023 Home Value:  $205,596.72

• Total expenditures:  $28.3 billion
• Prescription Sales:  $4,270,411,143 
• Health Cost of living: 87.2 
• Annual Health Cost:  $6,130.16
• 2023 Home Value:  $177,659.55

• Total expenditures:  $64.3 billion
• Prescription Sales:  $12,378,461,230 
• Health Cost of living: 88.1 
• Annual Health Cost:  $6,193.43
• 2023 Home Value:  $295,025.85

• Total expenditures:  $61 billion
• Prescription Sales:  $8,388,211,110 
• Health Cost of living: 89.9 
• Annual Health Cost:  $6,319.97
• 2023 Home Value:  $230,264.93

• Total expenditures:  $24.5 billion
• Prescription Sales:  $3,662,498,053 
• Health Cost of living: 90.3 
• Annual Health Cost:  $6,348.09
• 2023 Home Value:  $523,236.34

• Total expenditures:  $37.6 billion
• Prescription Sales:  $5,384,438,969 
• Health Cost of living: 91.8 
• Annual Health Cost:  $6,453.54 
• 2023 Home Value:  $193,251.15

• Total expenditures:  $64.9 billion
• Prescription Sales:  $9,205,879,893 
• Health Cost of living: 93.5 
• Annual Health Cost:  $6,573.05
• 2023 Home Value:  $422,688.94

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• Total expenditures:  $98.6 billion
• Prescription Sales:  $12,820,459,660 
• Health Cost of living: 94 
• Annual Health Cost:  $6,608.20
• 2023 Home Value:  $218,689.67

• Total expenditures: $246.8 billion
• Prescription Sales: $35,148,774,471 
• Health Cost of living: 94.1
• Annual Health Cost:  $6,615.23
• 2023 Home Value:  $299,094.45

• Total expenditures:  $26.2 billion 
• Prescription Sales:  $3,561,862,610 
• Health Cost of living: 94.9 
• Annual Health Cost:  $6,671.47
• 2023 Home Value:  $429,939.53

• Total expenditures:  $128.3 billion
• Prescription Sales:  $18,637,066,513 
• Health Cost of living: 95.4 
• Annual Health Cost:  $6,706.62
• 2023 Home Value:  $244,772.25

• Total expenditures:  $11 billion
• Prescription Sales:  $968,230,030
• Health Cost of living: 95.7
• Annual Health Cost:  $6,727.71
• 2023 Home Value:  $437,276.21

• Total expenditures:  $105.4 billion
• Prescription Sales:  $11,442,428,793
• Health Cost of living: 96.1
• Annual Health Cost:  $6,755.83
• 2023 Home Value:  $466,251.23

• Total expenditures:  $16.3 billion
• Prescription Sales:  $1,689,235,729
• Health Cost of living: 96.2
• Annual Health Cost:  $6,762.86
• 2023 Home Value:  $355,438.99

• Total expenditures:  $65.6 billion
• Prescription Sales:  $6,655,825,064
• Health Cost of living: 96.2
• Annual Health Cost:  $6,762.86
• 2023 Home Value:  $399,432.56

• Total expenditures:  $214.4 billion
• Prescription Sales:  $27,850,576,298
• Health Cost of living: 96.3
• Annual Health Cost:  $6,769.89
• 2023 Home Value:  $401,406.60

• Total expenditures:  $122.5 billion
• Prescription Sales:  $15,616,299,030
• Health Cost of living: 96.5 
• Annual Health Cost:  $6,783.95
• 2023 Home Value:  $210,301.05

• Total expenditures:  $45.7 billion
• Prescription Sales:  $6,869,070,901
• Health Cost of living: 96.7
• Annual Health Cost:  $6,798.01
• 2023 Home Value:  $277,815.60

• Total expenditures:  $148.3 billion
• Prescription Sales:  $13,534,978,210
• Health Cost of living: 96.7
• Annual Health Cost:  $6,798.01
• 2023 Home Value:  $247,297.53

• Total expenditures:  $22.8 billion
• Prescription Sales:  $2,996,916,342
• Health Cost of living: 97
• Annual Health Cost:  $6,819.10
• 2023 Home Value:  $150,671.59

• Total expenditures:  $11.2 billion
• Prescription Sales:  $812,859,186 
• Health Cost of living: 97
• Annual Health Cost:  $6,819.10
• 2023 Home Value:  $287,737.32

• Total expenditures:  $20.4 billion
• Prescription Sales:  $2,501,994,025
• Health Cost of living: 97.1
• Annual Health Cost:  $6,826.13
• 2023 Home Value:  $247,302.74

• Total expenditures:  $27.4 billion
• Prescription Sales:  $4,408,000,497
• Health Cost of living: 97.1
• Annual Health Cost:  $6,826.13
• 2023 Home Value:  $211,736.92

• Total expenditures:  $27.9 billion
• Prescription Sales:  $4,435,079,204
• Health Cost of living: 97.6
• Annual Health Cost:  $6,861.28
• 2023 Home Value:  $164,964.62

• Total expenditures:  $48.8 billion
• Prescription Sales:  $7,237,285,636
• Health Cost of living: 97.9
• Annual Health Cost:  $6,882.37
• 2023 Home Value:  $185,547.77

• Total expenditures:  $6.4 billion
• Prescription Sales:  $622,538,071
• Health Cost of living: 98.6
• Annual Health Cost:  $6,931.58
• 2023 Home Value:  $325,043.12

• Total expenditures:  $71 billion
• Prescription Sales:  $9,263,917,975
• Health Cost of living: 98.9
• Annual Health Cost:  $6,952.67
• 2023 Home Value:  $225,211.73

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• Total expenditures:  $18.8 billion
• Prescription Sales:  $2,464,097,104
• Health Cost of living: 99.6
• Annual Health Cost:  $7,001.88
• 2023 Home Value:  $282,904.19

• Total expenditures:  $31 billion
• Prescription Sales:  $3,595,363,402
• Health Cost of living: 99.7
• Annual Health Cost:  $7,008.91
• 2023 Home Value:  $204,538.46

• Total expenditures:  $14,886,000,000
• Prescription Sales:  $1,893,945,927
• Health Cost of living: 101.2
• Annual Health Cost:  $7,114.36
• 2023 Home Value:  $444,321.25

• Total expenditures:  $42.7 billion
• Prescription Sales:  $4,244,144,617
• Health Cost of living: 101.4
• Annual Health Cost:  $7,128.42
• 2023 Home Value:  $498,120.15

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• Total expenditures:  $93.8 billion
• Prescription Sales:  $13,791,505,382
• Health Cost of living: 101.4
• Annual Health Cost:  $7,128.42
• 2023 Home Value:  $311,237.01

• Total expenditures:  $49.9 billion
• Prescription Sales:  $6,742,641,348
• Health Cost of living: 102
• Annual Health Cost:  $7,170.60
• 2023 Home Value:  $558,684.03

• Total expenditures:  $79 billion
• Prescription Sales:  $9,342,756,183
• Health Cost of living: 102.6
• Annual Health Cost:  $7,212.78
• 2023 Home Value:  $366,186.09

• Total expenditures:  $12.7 billion
• Prescription Sales:  $1,725,723,360
• Health Cost of living: 104.3
• Annual Health Cost:  $7,332.29
• 2023 Home Value:  $358,962.22

• Total expenditures:  $271 billion
• Prescription Sales:  $27,425,428,273
• Health Cost of living: 104.5
• Annual Health Cost:  $7,346.35
• 2023 Home Value:  $401,215.22

• Total expenditures:  $7.9 billion
• Prescription Sales:  $671,914,956
• Health Cost of living: 106.2
• Annual Health Cost:  $7,465.86
• 2023 Home Value:  $333,884.10

• Total expenditures:  $405.5 billion
• Prescription Sales:  $32,525,850,723
• Health Cost of living: 106.4
• Annual Health Cost:  $7,479.92
• 2023 Home Value:  $747,628.38

• Total expenditures:  $12.4 billion
• Prescription Sales:  $1,265,773,132
• Health Cost of living: 107.4
• Annual Health Cost:  $7,550.22
• 2023 Home Value:  $426,464.16

• Total expenditures:  $94.5 billion
• Prescription Sales:  $15,179,518,162
• Health Cost of living: 109.5
• Annual Health Cost:  $7,697.85
• 2023 Home Value: $314,945.99

• Total expenditures:  $44.4 billion
• Prescription Sales:  $5,416,378,763
• Health Cost of living: 109.7
• Annual Health Cost:  $7,711.91
• 2023 Home Value:  $384,211.21

• Total expenditures:  $61.4 billion
• Prescription Sales:  $5,866,165,654
• Health Cost of living: 111.5
• Annual Health Cost:  $7,838.45
• 2023 Home Value:  $323,769.23

• Total expenditures:  $8.7 billion
• Prescription Sales:  $589,855,944
• Health Cost of living: 111.6
• Annual Health Cost:  $7,845.48
• 2023 Home Value:  $247,713.49

• Total expenditures:  $91.8 billion
• Prescription Sales:  $8,051,356,086
• Health Cost of living: 112.6
• Annual Health Cost:  $7,915.78
• 2023 Home Value:  $584,901.41

• Total expenditures:  $58.2 billion
• Prescription Sales:  $9,045,899,186
• Health Cost of living: 113.7
• Annual Health Cost:  $7,993.11
• 2023 Home Value:  $266,558.47

• Total expenditures:  $14.5 billion
• Prescription Sales:  $1,253,852,242
• Health Cost of living: 118.4
• Annual Health Cost:  $8,323.52
• 2023 Home Value:  $966,545.19

• Total expenditures:  $71.3 billion
• Prescription Sales:  $6,907,126,327
• Health Cost of living: 119.8
• Annual Health Cost:  $8,421.94
• 2023 Home Value:  $585,856.29

• Total expenditures:  $16.1 billion
• Prescription Sales:  $1,422,879,387
• Health Cost of living: 120.6
• Annual Health Cost:  $8,478.18
• 2023 Home Value:  $449,351.82

• Total expenditures:  $9.9 billion
• Prescription Sales:  $757,206,371
• Health Cost of living: 149.8
• Annual Health Cost:  $10,530.94
• 2023 Home Value:  $354,937.10

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Cameron Huddleston contributed to the reporting for this article.

Methodology: To find the Best US States to Retire with Low Healthcare Costs, GoBankingRates analyzed every state through a few factors; [1] average annual prescription costs sourced from Kaiser Family Foundation Prescription Sales, [2] Total medical expenditures sourced from Kaiser Family Foundation Health Care Expenditures, [3] Healthcare Cost of Living sourced from the Missouri Economic Research and Information, [4] 2023 Median Home Value sourced from Zillow Home Value Index, and [5] the average annual healthcare cost by people 65 and over. This average is multiplied by the Health CoL to find the average cost for each state for people 65 and over.  All information is up-to-date as-of June 9th, 2023.