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 $250 (2% 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.