20 Healthiest States in the US in 2023

Meerub Anjum
12 min read

In This Article:

In this article, we will look into the 20 healthiest states in the US in 2023. If you want to skip our detailed analysis, you can go directly to the 5 Healthiest States in the US in 2023.

Health Status of the US

According to the OECD Health at a Glance 2023 report, The United States spends $12,555 per capita on healthcare, which is around 3 times more than the OECD average. However, the US lags behind other OECD countries in various aspects such as a low life expectancy, high preventable and treatable mortality rates, and alarmingly high prevalence of obesity. Despite its struggles, the US provides higher financial coverage as compared to other member countries, with 84% of the expense covered by mandatory prepayment. Moreover, 75% of people in the US report satisfaction with the quality of healthcare, surpassing the OECD average of 67%.

The US Healthcare Market

According to a report by McKinsey and Company, the healthcare market in the US was worth $654 billion in 2021. The market revenue is expected to grow at a CAGR of 4% and reach $790 billion in 2026. Previous estimates projected a CAGR of 6% from 2021 to 2025. However, the industry faced multiple challenges such as labor shortages and high inflation rates hindering its growth. Although the growth is hampered by these challenges, significant growth is expected across various segments including Medicare Advantage, software and platforms, ambulatory surgery centers, and specialty pharmacy.

The Medicare segment is experiencing a significant shift that is expected to continue in the coming years, fueled by an increase in the aging population. As reported by the Centers for Medicare & Medicaid Services (CMS) enrollment data, a 3% growth per year is expected in the over-65 population over the next five years. The commercial segment faced a decline in its profits in 2021 as compared to 2019, due to the return of deferred care after the pandemic. However, the segment is expected to rebound and grow at a CAGR of 15% by 2026.

The government segment is expected to grow at a compound annual growth rate of 11% and reach $75 billion in 2026. The growth is fueled by rising insurance premium rates and increased Medicare Advantage penetration. However, the growth is expected to be slower in 2023 due to inflation and an increase in provider reimbursement rates. The profit pools for the government segment are estimated to be about 50% more than the commercial segment, driven by a growing aging population, the rising traction of Medicare Advantage, and a decline in fully insured businesses.

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