Direct Spending on Healthcare
A non-elderly single person in better health with a $15,000 income and Medicaid coverage spends $700 per year (5% of their income) on health. This includes $150 (1% of their income) in out-of-pocket health spending, $0 (0% of their income) in health insurance premiums, and approximately $550 (4% 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 $200 in Medicare payroll taxes, not shown in the chart above. When combined, this person’s spending on health care and the money spent by their employer on their behalf totals $900.