The first year of the coronavirus pandemic caused a dramatic increase in hospital costs. Our team of analysts found that hospital expenses per patient increased by nearly 10% in 2020.
The sharp increase in hospital expenses is part of a trend that goes back at least a decade. We found that hospital expenses have risen 23% since 2016 and 47% since 2011.
Key findings:
- Hospital expenses increased 9% during the first year of COVID-19
- Washington, Oregon and New York have the highest hospital expenses
- Average per-patient cost went from $1,794 to $2,646 in a decade
- Health insurance premiums are up 17% since 2016
The cost of the coronavirus pandemic on hospitals
From labor and supplies to medications, the coronavirus pandemic had an impact on nearly every aspect of hospital care and expenses. In one year, average hospital expenses per patient rose 9% from $2,420 to $2,646.
Washington, Oregon and New York currently have the highest hospital costs at around $4,000 per patient. But many states experienced dramatic jumps in costs. Expenses increased by 15% or more in eight states since 2019. Meanwhile, expenses have increased by more than 20% in 29 states since 2016.
| State | Daily per-patient cost | % change since 2016 | % change since 2019 |
|---|---|---|---|
| Washington | $4,268 | 34% | 22% |
| Oregon | $3,998 | 23% | 9% |
| New York | $3,726 | 40% | 20% |
| Connecticut | $3,698 | 23% | 21% |
| California | $3,686 | 22% | 10% |
| North Dakota | $3,684 | 14% | 0% |
| New Hampshire | $3,280 | 47% | 15% |
| Utah | $3,254 | 18% | 4% |
| Wisconsin | $3,233 | 27% | 11% |
| Colorado | $3,172 | 16% | 8% |
| New Mexico | $3,152 | 18% | 10% |
| Vermont | $3,114 | 39% | 17% |
| Ohio | $3,022 | 12% | 10% |
| Rhode Island | $3,019 | 23% | 7% |
| Texas | $3,009 | 31% | 12% |
| Arizona | $2,889 | 30% | 14% |
| Illinois | $2,867 | 24% | 12% |
| Massachusetts | $2,833 | 24% | -7% |
| Virginia | $2,827 | 22% | 10% |
| Nevada | $2,634 | 34% | 9% |
| Idaho | $2,630 | 10% | 7% |
| Indiana | $2,546 | 17% | 0% |
| Hawaii | $2,533 | 27% | 13% |
| New Jersey | $2,527 | -17% | -17% |
| Florida | $2,471 | 20% | 7% |
| North Carolina | $2,462 | 36% | 16% |
| Maryland | $2,452 | 26% | 12% |
| Wyoming | $2,443 | 4% | 1% |
| Nebraska | $2,417 | 42% | 9% |
| South Dakota | $2,398 | 37% | 6% |
| Alaska | $2,385 | 1% | 1% |
| Missouri | $2,364 | 16% | 9% |
| Minnesota | $2,357 | 27% | 12% |
| Kentucky | $2,336 | 28% | 8% |
| South Carolina | $2,280 | 18% | 11% |
| Louisiana | $2,262 | 21% | 7% |
| Delaware | $2,257 | -5% | 6% |
| Kansas | $2,228 | 29% | 13% |
| Oklahoma | $2,172 | 24% | 6% |
| Tennessee | $2,169 | 26% | 11% |
| Arkansas | $2,116 | 25% | -1% |
| Michigan | $2,102 | 8% | 4% |
| Pennsylvania | $1,998 | 18% | 7% |
| Montana | $1,989 | 35% | 17% |
| Maine | $1,911 | 20% | 8% |
| Alabama | $1,794 | 19% | 6% |
| Georgia | $1,787 | 19% | 15% |
| Iowa | $1,652 | 8% | 5% |
| West Virginia | $1,624 | 22% | 14% |
| Mississippi | $1,436 | 7% | 5% |
Hospital expenses and health insurance
How much a hospital pays to care for a patient is not a direct indicator of how much people living in the state will pay for health care. However, we did observe a consistent pattern: The more hospital expenses went up, the more people paid for health insurance.
Our analysts found that health insurance premiums have risen by 17% since 2016. Premiums have risen fastest in South Carolina, Nebraska and Vermont, where people are now paying as much as 30% more than they were in 2016.
Health insurance premiums didn’t rise dramatically during the first year of the pandemic. Our analysts found that nationwide, health insurance premiums rose by 3% from 2019 to 2020. However, preliminary information from 2022 indicates that health insurance premiums have risen by as much as 24% in some states over the last year.
| State | Average health insurance cost | % change in health insurance since 2016 | % change in hospital expenses since 2016 |
|---|---|---|---|
| Alabama | $6,393 | 15% | 19% |
| Alaska | $8,635 | 9% | 1% |
| Arizona | $6,612 | 9% | 30% |
| Arkansas | $6,414 | 20% | 25% |
| California | $7,173 | 18% | 22% |
| Colorado | $7,206 | 21% | 16% |
| Connecticut | $7,501 | 15% | 23% |
| Delaware | $7,280 | 12% | -5% |
| Florida | $7,078 | 13% | 20% |
| Georgia | $6,876 | 14% | 19% |
| Hawaii | $7,040 | 20% | 27% |
| Idaho | $6,744 | 21% | 10% |
| Illinois | $7,376 | 18% | 24% |
| Indiana | $7,319 | 19% | 17% |
| Iowa | $6,932 | 18% | 8% |
| Kansas | $6,675 | 14% | 29% |
| Kentucky | $6,949 | 21% | 28% |
| Louisiana | $6,713 | 17% | 21% |
| Maine | $7,496 | 21% | 20% |
| Maryland | $7,352 | 19% | 26% |
| Massachusetts | $7,452 | 13% | 24% |
| Michigan | $6,683 | 13% | 8% |
| Minnesota | $6,910 | 15% | 27% |
| Mississippi | $6,561 | 16% | 7% |
| Missouri | $7,179 | 22% | 16% |
| Montana | $6,860 | 6% | 35% |
| Nebraska | $7,611 | 25% | 42% |
| Nevada | $6,493 | 18% | 34% |
| New Hampshire | $7,991 | 20% | 47% |
| New Jersey | $7,373 | 14% | -17% |
| New Mexico | $7,424 | 19% | 18% |
| New York | $8,177 | 24% | 40% |
| North Carolina | $7,036 | 23% | 36% |
| North Dakota | $7,216 | 17% | 14% |
| Ohio | $6,989 | 11% | 12% |
| Oklahoma | $7,058 | 22% | 24% |
| Oregon | $6,917 | 16% | 23% |
| Pennsylvania | $7,246 | 17% | 18% |
| Rhode Island | $7,326 | 10% | 23% |
| South Carolina | $7,516 | 30% | 18% |
| South Dakota | $7,070 | 20% | 37% |
| Tennessee | $6,485 | 17% | 26% |
| Texas | $7,017 | 20% | 31% |
| Utah | $6,593 | 8% | 18% |
| Vermont | $7,868 | 24% | 39% |
| Virginia | $6,928 | 12% | 22% |
| Washington | $7,440 | 16% | 34% |
| West Virginia | $6,993 | 10% | 22% |
| Wisconsin | $7,250 | 14% | 27% |
| Wyoming | $7,743 | 19% | 4% |
Costs of uninsured health care
The number of people without health insurance increased during the first year of the pandemic. It’s estimated that between 5 and 10 million people lost their health insurance in 2020, bringing the total number of people without health insurance to more than 30 million and putting a tremendous strain on the health care system.
People without health insurance face higher medical bills they often struggle to or cannot pay. Every year, more than $35 billion worth of medical bills goes unpaid. This debt is absorbed by medical providers who then charge more for their services. Ultimately, the higher costs are reflected in people’s health insurance premiums.
It’s currently unclear exactly how much the increase in hospital expenses will increase health insurance premiums. However, if the recent past is any indication, we can expect premiums to continue to rise along with hospital expenses. Health insurance is largely tied to employment, but there are ways to buy health insurance on the open market.
Methodology
QuoteWizard analyzed American Hospital Association data via the Kaiser Family Foundation to determine the average per-patient hospital cost in each state. Data was evaluated over a 10-year period from 2016 to 2020. Hospital expense data was then cross-referenced with Kaiser Family Foundation and LendingTree information on the average cost of health insurance in each state.
References:
QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.