Texas Salaries Outpace Soaring Healthcare Costs, Easing the Burden

TEXAS (TXAN 24) — A new report from Steno Health shows that while healthcare costs have risen across the country over the last five years, most Americans—including Texans—are actually spending a smaller share of their salaries on medical expenses compared to 2019.

In Texas, the average annual healthcare cost rose 18%, from $6,279 in 2019 to $7,411 in 2023. However, thanks to a 23.5% increase in average salary—from $53,271 to $65,768—the percentage of income Texans spend on healthcare dropped from 12% to 11%.

“Though medical costs keep climbing, they’re taking a smaller bite out of the average paycheck,” said Dr. Alex Milani, medical director at Steno Health.

National Picture: Costs Up, Burden Down

Across the U.S., the average person now spends $9,195 per year on healthcare, up 20.9% from 2019. Yet salaries rose even faster—24.9% nationally—leading to a drop in the average portion of income spent on healthcare, from 14% in 2019 to 13% in 2023.

Only two states—Kentucky and Louisiana—saw residents spend a larger percentage of their income on healthcare than five years ago.

Where Texas Stands

• 2019: $6,279 spent | $53,271 salary → 12% of income

• 2023: $7,411 spent | $65,768 salary → 11% of income

Texas is now among the states where healthcare costs represent a lower burden than the national average.

Highest and Lowest Spenders

• West Virginia leads the nation with residents spending 21% of their income on healthcare.

• Utah, Nevada, and Washington are lowest, with residents in those states spending just 11%.

Fastest Growth in Costs

Louisiana (+38.2%) and Kentucky (+35.4%) saw the steepest five-year increases in healthcare costs. In contrast, New Hampshire had the smallest increase at 5.4%, followed by Idaho and Washington.

Despite regional disparities, the study suggests policy, demographics, and local healthcare infrastructure are critical to affordability.

“The South carries the highest burden relative to income,” Milani said. “Texas has made progress, but rising healthcare prices remain a real concern.”

Data Credit: Steno Health

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