Direct Spending on Healthcare
A family of four in better health with a $50,000 income and individual market or exchange coverage spends $9,400 per year (19% of their income) on health. This includes $4,700 (9% of their income) in out-of-pocket health spending, $3,300 (7% of their income) in health insurance premiums, and approximately $1,400 (3% of their income) in state and federal taxes that fund health programs.
Additional Contributions by Employers
In this scenario, we estimate that the employer is contributing an additional $750 in Medicare payroll taxes, not shown in the chart above. When combined, this family’s spending on health care and the money spent by their employer on their behalf totals $10,150.