Health Insurance
Typical US Hospital Stay Costs 384 Hours of Work With Average Earnings
Health care is an essential part of our lives, and seeking care can be financially devastating when your health takes a turn for the worse. That’s especially true if you’re admitted for a hospital stay. In fact, according to the latest ValuePenguin study, Americans who earn average wages need to work 384 hours to afford a typical hospital stay.
But that varies by state. Keep reading to learn where residents need to work the most (and least) to afford a stay, as well as how to utilize your health insurance to mitigate hospital costs.
On this page
- Key findings
- Typical U.S. hospital stay costs 384 hours of work, on average — here’s how that’s changed over time
- New Mexico residents must work 581 hours to afford a typical hospital stay
- Alaska has the most affordable hospital stays for workers
- Mitigating hospital stay costs: Top expert tips
- Methodology
Key findings
- Americans earning average wages need to work 384 hours to afford a typical hospital stay. The average per-day hospital cost is $2,883, but the average stay is 4.5 days — equaling $12,974. Average earnings among private U.S. workers are $33.82 an hour.
- Between 1999 and 2021, the average hospital stay cost increased 161.7%. In 1999, the average cost was $1,102 a day. However, accounting for average earnings paints a fuller picture. Last year, we found a typical hospital stay cost Americans 504 hours of work based on average earnings. Since, average earnings have risen significantly, while average hospital stay costs have risen much slower.
- New Mexico residents have to work the most hours to afford a typical hospital stay. A hospital stay in New Mexico costs an average of $15,719, while workers earn an average of $27.04 hourly. That means residents would need to work 581 hours to afford a standard hospital stay. Oregon (535 hours) and California (503 hours) are second and third, respectively.
- Alaska has the most affordable hospital stays. While a typical hospital stay costs $8,213, workers earn an average of $33.71 an hour, meaning residents would need to work 244 hours to pay for it. Mississippi (245 hours) and South Dakota (269 hours) have the next most affordable hospital stays.
Typical U.S. hospital stay costs 384 hours of work, on average — here’s how that’s changed over time
Nobody wants to stay in a hospital overnight, particularly with high medical costs. In fact, the average per-day hospital cost is $2,883, according to health policy research site KFF. Although that figure is already high, the average stay is 4.5 days, according to Definitive Healthcare — meaning Americans rack up $12,974 in bills during an average stay.
With workers earning $33.82 an hour on average, that means Americans need to work 384 hours to afford a typical hospital stay. (Of course, that’s if they’re paying the bill entirely on their own, which isn’t always the case.)
Over time, per-day hospital costs have risen dramatically. In 1999, the average hospital stay cost was $1,102 a day, meaning it increased 161.7% over 22 years. Accounting for average earnings may make this increase seem less severe, though. When we conducted this study last year, we found a typical hospital stay cost Americans 504 hours of work based on average earnings — 120 hours more than this year.
The difference? Last year, Americans earned $26.22 an hour, on average. While average earnings have risen significantly, average hospital stay costs have risen significantly slower. It’s also worth noting that the average hospital stay has dipped slightly. Patients stayed an average of 4.6 days in the hospital when we last conducted this study, but that figure has fallen to 4.5.
Average per-day hospital stay costs
Year | Average per-day hospital stay cost |
|---|---|
| 1999 | $1,102 |
| 2000 | $1,148 |
| 2001 | $1,217 |
| 2002 | $1,290 |
| 2003 | $1,371 |
| 2004 | $1,450 |
| 2005 | $1,522 |
| 2006 | $1,612 |
| 2007 | $1,696 |
| 2008 | $1,782 |
| 2009 | $1,853 |
| 2010 | $1,910 |
Source: ValuePenguin analysis of KFF data.
According to ValuePenguin health insurance expert Divya Sangameshwar, the rising costs of medical services likely play a role in this.
"While the high cost of a hospital stay isn’t surprising, it’s startling to see how much an average visit costs," she says. "Several factors drive hospital costs, most notably the rising cost of health care. Rising costs are driven by the introduction of new and more expensive health care technology and drugs, the automation of insurance and provider payment systems, and the consolidation of hospitals."
According to another ValuePenguin study on health care expenditures, spending on medical provider services increased by 10.5% between 2016 and 2019 alone. In that same period, spending on disease-related medical services rose by 14.9%.
Why else is health care becoming more expensive? America’s aging population is a significant factor here. As of 2020, the U.S. Census Bureau found that around 1 in 6 people in the U.S. were 65 or older. According to the Peterson-KFF Health System Tracker, people 55 and older accounted for 56% of the total health spending in the U.S. in 2019 — largely because older Americans are more susceptible to chronic illnesses.
Notably, average daily hospital costs jumped 10.2% between 2019 and 2020, rising from $2,607 to $2,873. The COVID-19 pandemic certainly played a role here as hospitals faced a surge in demand for medical supplies while also dealing with rising labor costs due to a nationwide nursing shortage. The pandemic also caused drug expenses to increase by 36.9% per patient between 2019 and 2021 due to the need for medications to treat COVID-19 patients, according to the American Hospital Association.
New Mexico residents must work 581 hours to afford a typical hospital stay
By state, New Mexico ranks highest for the number of hours residents need to work to afford a typical hospital stay. In New Mexico, a hospital stay costs an average of $15,719. With workers earning an average of $27.04 hourly, residents must work 581 hours to afford a standard hospital stay.
States where residents need to work the most hours to afford a typical hospital stay
Rank | State | Cost of hospital stay | Average hourly earnings | Hours of work needed to afford a stay |
|---|---|---|---|---|
| 1 | New Mexico | $15,719 | $27.04 | 581 |
| 2 | Oregon | $17,375 | $32.47 | 535 |
| 3 | California | $18,815 | $37.44 | 503 |
| 4 | Delaware | $14,774 | $29.65 | 498 |
| 5 | Ohio | $14,229 | $29.26 | 486 |
Source: ValuePenguin analysis of KFF, Definitive Healthcare and Bureau of Labor Statistics (BLS) data.
Oregon ranks next. An average hospital stay costs $17,375, while workers earn an average of $32.47 hourly, meaning residents here need to work 535 hours to afford a stay. Meanwhile, in California, an average stay costs $18,815 and workers earn an average of $37.44 hourly. With residents needing to work 503 hours to afford a stay, California is in third. While California has the fourth-highest average hourly earnings, it also has the highest hospital stay costs of any state.
When it comes to minimum wage earners, however, Utah residents must work the most hours to afford a typical hospital stay. With a minimum wage of $7.25 (the federal minimum wage) and an average hospital stay cost of $14,306, Utah residents must work 1,973 hours to afford a hospital stay.
Unsurprisingly, the two states that follow also pay the federal minimum wage of $7.25 (in fact, the top 10 states do). Those two states are:
- Indiana: A hospital stay costs $13,631, meaning minimum wage earners must work 1,880 hours to afford it.
- New Hampshire: A hospital stay costs $13,217, meaning minimum wage earners must work 1,823 hours to afford it.
Alaska has the most affordable hospital stays for workers
On the other end of the list, Alaska has the most affordable hospital stays for workers. A typical hospital stay costs $8,213 in Alaska, while workers earn an average of $33.71 an hour. That means residents would need to work 244 hours to afford a trip to the hospital.
States where residents need to work the least hours to afford a typical hospital stay
Rank | State | Cost of hospital stay | Average hourly earnings | Hours of work needed to afford a stay |
|---|---|---|---|---|
| 1 | Alaska | $8,213 | $33.71 | 244 |
| 2 | Mississippi | $5,873 | $23.98 | 245 |
| 3 | South Dakota | $7,344 | $27.34 | 269 |
| 4 | Wyoming | $8,082 | $28.58 | 283 |
| 5 | Alabama | $8,199 | $28.47 | 288 |
Source: ValuePenguin analysis of KFF, Definitive Healthcare and BLS data.
Mississippi ranks next. While a hospital stay costs $5,873, workers earn an average of $23.98 hourly — meaning they’d need to work 245 hours to afford a stay. South Dakota rounds out the top three: A hospital stay here costs $7,344, while workers earn an average of $27.34. That means an average resident needs to work 269 hours to pay their hospital bills.
It’s not just typical workers who need to work the least for hospital stays here: All three states again make the top four when it comes to the most affordable hospital stays for minimum wage workers. South Dakota jumps to first — with a minimum wage of $10.80, residents need to work 680 hours to afford a hospital stay.
That’s followed by Alaska, where minimum wage employees earn $10.85. That translates to 757 hours of labor. Minnesota rounds out the top three: Minimum wage workers earn $15.19, and with the high hospital stay costs in the state, this equals 759 hours. Notably, Mississippi is the only state among the 10 with the most affordable hospital stays where workers earn the federal minimum wage.
Full rankings
Where residents need to work the most/least hours to afford a typical hospital stay
Rank | State | Cost of hospital stay | Average hourly earnings | Hours of work needed to afford a stay |
|---|---|---|---|---|
| 1 | New Mexico | $15,719 | $27.04 | 581 |
| 2 | Oregon | $17,375 | $32.47 | 535 |
| 3 | California | $18,815 | $37.44 | 503 |
| 4 | Delaware | $14,774 | $29.65 | 498 |
| 5 | Ohio | $14,229 | $29.26 | 486 |
| 6 | Indiana | $13,631 | $28.93 | 471 |
| 7 | Arizona | $14,103 | $30.23 | 467 |
| 8 | Idaho | $12,897 | $27.88 | 463 |
| 9 | Washington | $17,127 | $37.75 | 454 |
| 10 | New York | $16,241 | $35.82 | 453 |
| 10 | Utah | $14,306 | $31.56 | 453 |
| 12 | Maryland | $15,480 | $34.23 | 452 |
Source: ValuePenguin analysis of KFF, Definitive Healthcare and BLS data.
Where minimum wage earners need to work the most/least hours to afford a typical hospital stay
Rank | State | Cost of a hospital stay | Minimum wage earnings | Hours of work needed to afford a stay |
|---|---|---|---|---|
| 1 | Utah | $14,306 | $7.25 | 1,973 |
| 2 | Indiana | $13,631 | $7.25 | 1,880 |
| 3 | New Hampshire | $13,217 | $7.25 | 1,823 |
| 4 | Texas | $13,109 | $7.25 | 1,808 |
| 5 | Idaho | $12,897 | $7.25 | 1,779 |
| 6 | Pennsylvania | $12,713 | $7.25 | 1,753 |
| 7 | Wisconsin | $12,191 | $7.25 | 1,681 |
| 8 | North Carolina | $11,579 | $7.25 | 1,597 |
| 9 | South Carolina | $11,300 | $7.25 | 1,559 |
| 10 | Louisiana | $11,156 | $7.25 | 1,539 |
| 11 | Kentucky | $11,106 | $7.25 | 1,532 |
| 12 | Tennessee | $11,030 | $7.25 | 1,521 |
Source: ValuePenguin analysis of KFF, Definitive Healthcare and MinimumWage.com data.
Mitigating hospital stay costs: Top expert tips
It can be overwhelming to worry about how you’ll afford a hospital stay in the middle of a health crisis, and Sangameswhar says it’s better to plan for the eventuality when you pick a health care plan each year. Here are some pointers to keep in mind:
- Pick an insurance plan that’s right for you. "While it’s tempting to pick the plan with the lowest monthly premium, it’s important to study each plan’s benefits to see what kind of coverage it offers for hospitalization or an ER visit," Sangameshwar says. "This is crucial if you have children — who tend to be accident-prone — or if you’re battling a chronic health condition that could send you to the hospital if you have a crisis."
- Get a supplemental insurance policy. A hospital visit can leave you with expenses your health insurance may not cover. "A supplemental insurance policy from providers like Aflac or MetLife will pay you cash to help you with out-of-pocket expenses from a hospital stay stemming from an accident, a critical illness or even a cancer diagnosis," she says. "Some employers offer hospitalization insurance too, which is another good way to manage out-of-pocket costs stemming from a hospital stay."
- Set up a health savings account and add to it regularly. According to another ValuePenguin survey on health plans, 56% of Americans are enrolled in a high-deductible health plan. "A health savings account is a crucial safety net for them in case of an emergency," she says. "In many cases, contributions to these accounts will come from a pretax paycheck, which will offer savings in the long term."
- Look into medical loans or credit cards. "This option is best for those with good credit scores since they can access lower interest rates," she says. "However, there are also options for medical loans for bad credit for those whose credit history is less than perfect."
Methodology
To calculate how many hours Americans need to work to afford an average hospital stay, ValuePenguin researchers analyzed the average daily cost of a hospital stay from KFF, via the American Hospital Association.
Researchers then multiplied the average length of a stay — 4.5 days, via Definitive Healthcare (as of June 2023) — by the average daily cost and divided that number by average hourly earnings. Researchers repeated this process for each state and then ranked the states using this metric.
To calculate minimum wage rankings, researchers pulled minimum wages for each state from MinimumWage.com as of Oct. 4, 2023, and then repeated the same process to rank the states.
2021 data on average hospital costs is from KFF. Data on average hourly earnings is from the Bureau of Labor Statistics. While state earnings are from 2022, national hourly earnings are from preliminary data from August 2023.
Each of the data points was the latest at the time of research.