Detroit Residents Spend Highest Percentage of Income on Healthcare: Study

Detroit Residents Spend More of Their Income on Healthcare

An analysis by a personal finance website indicates that Detroit residents are paying a higher percentage of their income towards healthcare costs compared to other large cities in the United States. Specifically, Detroit residents allocate an average of 13.17% of their household income to cover typical health care expenses, according to the study by WalletHub.

Rising Healthcare Costs Impacting Many

The rising cost of healthcare is causing financial strain for many, with essential services and medications becoming increasingly unaffordable. This issue is particularly pronounced in cities where the average income may not keep pace with healthcare costs and other rising living expenses, notes WalletHub writer and analyst, Chip Lupo.

Healthcare Cost Analysis Across 100 U.S. Cities

The WalletHub study compared the costs of five key healthcare components in the 100 largest U.S. cities. The components, which include doctor, dentist and optometrist visits, along with the prices of ibuprofen and insulin, were summed and compared to the median household income of each city.

Comparing Healthcare Costs in Different Cities

Detroit ranked as the 12th-most expensive city for a doctor visit and the 28th-most expensive city for a dentist visit. However, residents of Gilbert, Arizona, the least expensive city in terms of healthcare costs relative to income, only spend about 3.5% of their income towards similar services and medications.

Income Levels Contribute to Healthcare Spending Discrepancies

The median income level in Detroit, which is the second-lowest in the country, greatly contributes to the high percentage of income spent on healthcare. Other cities such as Cleveland, Ohio and Newark, New Jersey also ranked high on the list due to low median incomes coupled with higher healthcare costs.

What is WalletHub?

WalletHub is a personal finance company based in Miami. Their mission is to provide consumers with free credit scores, full credit reports, and real-time personalized money-saving advice.

Article written by Jalen Williams, trending reporter at the Detroit Free Press.