How much money do Idahoans have for a medical emergency? Less than most, new study finds
Unexpected medical costs can be one of the largest speed bumps in life, especially in a world where Americans pay at least twice as much annually in health care costs than any other first-world country.
According to data from The Commonwealth Fund, U.S. residents spend about $1,225 out-of-pocket annually on medical costs, and a further $10,687 is paid through government programs or voluntary personal spending.
These figures reveal a significant disparity in medical costs between the U.S. and other first-world countries. For instance, U.S. residents spend nearly twice as much as Germans and up to four times as much as those in countries such as South Korea, New Zealand, and Japan.
Is the average Idahoan financially prepared to handle a medical emergency?
How prepared are Idahoans for a medical emergency?
According to a new study conducted by home warranty company Cinch Home Services, Idahoans are worse off than residents of most states.
The study compared each state’s average take-home pay to essential expenses, including housing fees, property taxes, energy costs, and cost-of-living factors. The remaining income after the essential expenditures was used to determine how much money people had left over as a financial cushion for emergencies.
Data was gathered from the World Population Review, Forbes and the Energy Information Administration, among other sources.
Idahoans were found to be the third-least prepared, only behind California and Hawaii — states that tend to consistently rank highly on cost-of-living studies.
The study found that Idahoans spend, on average, $56,835 on total household expenses per year, leaving $8,510 of remaining salary on other costs. While all of that money could go toward medical costs, it also goes toward vacations, recreation, and non-necessary food and drink, among other things.
Those figures mean Idahoans have about 13% of their yearly income ($65,345) that doesn’t go toward household expenses.
“Even with insurance, building a small emergency fund is crucial,” a Cinch Home Services spokesperson said in a news release. “Not all instances are covered by insurance, and deductibles may apply. Having some cash readily available can cover these out-of-pocket expenses and bridge the gap while claims are processed.”
The most and least prepared states
Are you worried about a medical emergency sending your finances into a spiral? Here are the states where individuals are the most and least prepared for a medical emergency based on their finances. The percentage of their remaining salary after household expenses is noted.
The most prepared
North Dakota (48.4%)
Louisiana (46.1%)
Kansas (45.9%)
Iowa (45.4%)
Mississippi (45.3%)
The least prepared
Hawaii (-6.1%)
California (0.7%)
Idaho (13%)
Oregon (17.9%)
Montana (19.6%)
