A single person in better health with a $50,000 income and individual market or exchange coverage spends $9,150 per year (18% of their income) on health.

Direct Spending on Healthcare

A single person in better health with a $50,000 income and individual market or exchange coverage spends $9,150 per year (18% of their income) on health. This includes $2,700 (5% of their income) in out-of-pocket health spending, $3,450 (7% of their income) in health insurance premiums, and approximately $3,000 (6% 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.