Highlights

• Louisiana residents spend 10.18 percent of their monthly income on health insurance premiums
• The state ranks 8th highest in the nation for insurance costs relative to income
• Average monthly premium for silver health insurance plans is $509 in Louisiana
• Seven states require residents to dedicate a larger share of income to health coverage
• Louisiana's ranking reflects both premium costs and the state's median household income levels

Louisiana Ranks 8th Highest for Health Insurance Costs as Share of Income

Louisiana families are spending more than 10 percent of their monthly income on health insurance premiums, placing a significant financial strain on household budgets across the state.

LAFAYETTE, La. (KPEL News) - Louisiana residents pay some of the highest health insurance costs in the nation when you look at what they earn, according to WalletHub.

The personal finance website found Louisiana families spend 10.18 percent of their median monthly household income on health insurance premiums. That puts the state 8th highest in the country for insurance spending burden.

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Louisiana's Health Insurance Cost Burden

According to WalletHub's analysis, Louisiana residents pay an average of $509 per month for silver-tier health insurance plans. When you measure that against what families actually earn in the state, it takes a big bite out of monthly budgets.

Louisiana ranks well above the national average. Only seven states ask residents to spend a bigger chunk of their income on health insurance coverage. Vermont tops the list with residents spending nearly 20 percent of their income on premiums. West Virginia comes in second at 18.81 percent.

How Louisiana Stacks Up Against Other States

Louisiana's 10.18 percent rate puts it in troubling company among states where insurance eats up household income. Mississippi, just next door, ranks 6th at 10.47 percent of income going to health insurance. Alabama sits close behind at 9th with 10.12 percent.

The states where families get the best deal include New Hampshire at 4.02 percent, Maryland at 4.27 percent, and Virginia at 4.85 percent of monthly income. These states pair lower premium costs with higher household incomes, giving residents more breathing room.

Premium Increases Hit Louisiana Hard

WalletHub's numbers come at a tough time for families already stretched thin. Individual health insurance plan premiums jumped 6 percent in 2024, while family plan premiums went up 7 percent, the Kaiser Family Foundation reports.

For Louisiana families already spending more than 10 percent of their income on health insurance, these increases make an expensive situation worse. The state's high ranking comes from two factors working against families: the cost of insurance plans here and what people actually earn.

What This Means for Family Budgets

That 10.18 percent figure represents real money coming out of Louisiana family budgets every month. To put it in perspective, financial experts say housing shouldn't take more than 30 percent of your income. Health insurance at 10 percent is a major expense that has to compete with rent, groceries, and everything else families need.

Louisiana's spot in the top 10 shows just how hard it is for families here to get decent healthcare coverage they can actually afford.

The study looked at silver-tier plans, which offer middle-of-the-road deductibles and are typically cheaper than gold or platinum options.

Why Louisiana Ranks So High

Louisiana's ranking fits a pattern across the South, where several states land in the top spots for insurance cost burden. Both premium costs and household income levels play into where states end up on the list.

WalletHub used Census Bureau and Kaiser Family Foundation data to compare average premiums for silver health insurance plans across all 50 states. They then measured those costs against what families actually earn in each state.

These numbers can help Louisiana residents understand what they're up against when shopping for coverage and planning their budgets during open enrollment season.

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And speaking of health, if you're worried about catching one of the newest strains of COVID that has some health officials worried, here are some remedies to try. As always, consult your physician, too.