Health care continues draining Alaska’s wallets. New research confirms that Alaska health care costs far exceeded national urban averages in 2024. State economist Sam Tappen analyzed spending data and confirmed that the state’s three largest cities again topped the nation for medical expenses.
Fairbanks posted the steepest costs, which were 51.5% higher than average, followed closely by Juneau at 50.9% and Anchorage at 47.5%, according to the report. Tappen’s research highlights how urban Alaskans consistently pay more for medical services, a trend that’s continued over the past 15 years. Medical expenses in 2023 jumped 7.8%, outpacing overall inflation in Alaska, which stayed below 2% that same year.
The growth in health spending nearly quadrupled the state’s inflation rate, making it the fastest-rising cost in the local economy. Urban Alaska households spent 12% of their budgets on medical care in 2023, compared to 8% nationwide, the report found.
Although the report did not cover rural Alaska, similar disparities have been widely documented in earlier statewide cost studies. A 2016 analysis for Premera Blue Cross found Alaska’s provider payments were 76% higher than the national average overall.
Hospitals outside Anchorage had operating costs more than twice the national average, further inflating prices for everyday patients. Reports from the University of Alaska Anchorage’s ISER showed health care spending rose from $1.5 billion in 1991 to $9.7 billion by 2019.
Beyond health care, Fairbanks also led in utility costs, with 2024 rates more than double the US urban average. Groceries were not spared, either. Juneau ranked second in food costs nationwide, Fairbanks third, and Anchorage just behind in fourth place.
Despite these expenses, housing prices in Alaska have cooled as the hotter real estate market in other cities now surpasses them. Still, healthcare costs continue to place the greatest financial burden on residents, especially in urban areas.
