Overview of Health Plan Employee Compensation
America’s Health Insurance Plans (AHIP) released its comprehensive state-by-state analysis of health coverage on November 12, providing valuable insights into compensation levels across the health insurance industry. The trade association’s report utilizes data from the U.S. Census Bureau collected in 2022, offering a detailed snapshot of average wages for health plan employees throughout the United States.
The healthcare insurance sector remains a significant employer across the nation, with compensation levels varying dramatically based on geographic location, cost of living, and market dynamics. Understanding these salary differences helps both employers and job seekers make informed decisions about career opportunities in the health insurance industry.
Top-Paying States for Health Insurance Workers
District of Columbia Leads the Nation
The District of Columbia maintains its position at the top of the rankings with an impressive average salary of $171,681 for health plan employees. This represents a substantial premium over other regions and reflects the concentration of major health insurance companies, policy organizations, and regulatory bodies in the nation’s capital. The District of Columbia has consistently occupied the top spot in previous reports, demonstrating the stability of high compensation levels in this market.
Northeast Corridor Dominance
Connecticut secures the second position with an average wage of $130,507, followed closely by California at $126,630. The Northeast corridor shows particular strength in health insurance compensation, with New Jersey ($124,564), Maryland ($123,757), Rhode Island ($116,097), and Massachusetts ($113,841) all ranking in the top eight positions. This regional concentration reflects the presence of major insurance headquarters, sophisticated healthcare markets, and higher costs of living in these areas.
Regional Salary Trends and Analysis
Western States Performance
Western states demonstrate mixed results in health insurance employee compensation. While California ranks third nationally, other western states show more moderate salary levels. Colorado places seventh with $114,330, while Oregon comes in at $105,424. Washington state employees earn an average of $99,504, and Hawaii rounds out the western top performers at $100,015.
Midwestern Market Dynamics
The Midwest presents an interesting salary landscape, with Minnesota performing exceptionally well at $111,184, ranking ninth nationally. Iowa shows strong performance at $105,205, while Michigan ($100,527) and Illinois ($98,283) also break into six-figure territory. These figures often represent excellent value when adjusted for the region’s lower cost of living compared to coastal markets.
Southern States Analysis
Southern states generally occupy the lower end of the salary spectrum, though with notable exceptions. Kentucky stands out with an impressive $110,256 average, ranking tenth nationally. However, states like Florida ($77,410), South Carolina ($79,205), and Mississippi ($84,014) show considerably lower compensation levels. This regional variation may reflect differences in market maturity, cost of living, and industry concentration.
Complete State-by-State Rankings
The comprehensive list reveals significant variation in health insurance employee compensation across all 50 states plus the District of Columbia. The data shows a salary range spanning from North Dakota’s $68,574 to the District of Columbia’s $171,681—a difference of over $103,000 in average annual compensation.
States marked with asterisks in the original report indicate specific data characteristics or reporting methodologies that may affect direct comparisons. These 26 designated states span all regions and compensation levels, suggesting widespread application of particular census data collection or calculation methods.
Mid-Range Performers: Several states cluster around the $90,000-$100,000 range, including Virginia ($100,438), Georgia ($100,311), New Hampshire ($100,300), and Alaska ($99,491). This mid-range group represents solid compensation opportunities while often offering more affordable living costs than top-tier markets.
Lower-Tier Markets: The bottom quintile includes primarily southern and rural states, with North Dakota ($68,574), Wyoming ($73,035), and New Mexico ($74,154) showing the lowest average compensation. However, these figures must be considered alongside regional cost-of-living differences that may offset nominal salary gaps.
Key Takeaways from the Report
The AHIP report underscores the importance of geographic considerations in health insurance career planning. While coastal and metropolitan markets offer higher absolute salaries, many mid-tier states provide competitive compensation when adjusted for living costs. The consistent leadership of the District of Columbia, Connecticut, and California in previous reports suggests stable regional advantages in the health insurance employment market.
Healthcare insurance professionals should consider both salary levels and regional factors when evaluating career opportunities. The industry continues to offer competitive compensation across diverse markets, with significant opportunities available throughout the United States.
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