A single person in worse health with a $20,000 income and individual market or exchange coverage spends $4,150 per year (21% of their income) on health.

Direct Spending on Healthcare

A single person in worse health with a $20,000 income and individual market or exchange coverage spends $4,150 per year (21% of their income) on health. This includes $2,100 (11% of their income) in out-of-pocket health spending, $1,150 (6% of their income) in health insurance premiums, and approximately $900 (5% 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 $300 in Medicare payroll taxes, not shown in the chart above.