Direct Spending on Healthcare
A family of four with a $100,000 income and individual market or exchange coverage spends $18,800 per year (19% of their income) on health. This includes $5,450 (5% of their income) in out-of-pocket health spending, $8,500 (9% of their income) in health insurance premiums, and approximately $4,850 (5% 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 $1,450 in Medicare payroll taxes, not shown in the chart above.