Direct Spending on Healthcare
A family of four with at least one member in worse health and a $50,000 income on individual market or exchange coverage spends $12,500 per year (25% of their income) on health. This includes $7,800 (16% 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.