Direct Spending on Healthcare
A family of four with a $50,000 income and individual market or exchange coverage spends $9,550 per year (19% of their income) on health. This includes $4,850 (10% 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 $10,300.
The Peterson Center on Healthcare and KFF are partnering to monitor how well the U.S. healthcare system is performing in terms of quality and cost.