Direct Spending on Healthcare
A non-elderly single person with a $15,000 income and Medicaid coverage spends $800 per year (5% of their income) on health. This includes $350 (2% of their income) in out-of-pocket health spending, $0 (0% of their income) in health insurance premiums, and approximately $450 (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 $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 $1000.
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.