A non-elderly family of four with a $30,000 income and Medicaid coverage spends $1,200 per year (3% of their $36,150 after tax income) on health

Direct Spending on Healthcare

A non-elderly family of four with a $30,000 income and Medicaid coverage spends $1,200 per year (3% of their $36,229 after tax income) on health. This includes $350 (1% of their income) in out-of-pocket health spending, $0 (0% of their income) in health insurance premiums, and approximately $850 (2% of their income) in state and federal taxes that fund health programs.

Note: In this scenario, the family has a $30,000 income, but accounting for negative federal tax liability, their income would be approximately $36,229.

Additional Contributions by Employers

In this scenario, we estimate that the employer is contributing an additional $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 $1,650.