Direct Spending on Healthcare
A family of four with a $100,000 income and individual market or exchange coverage spends $24,300 per year (24% of their income) on health. This includes $6,800 (7% of their income) in out-of-pocket health spending, $12,450 (12% of their income) in health insurance premiums, and approximately $5,050 (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. When combined, this family’s spending on health care and the money spent by their employer on their behalf totals $25,750.