Direct Spending on Healthcare
A single person in worse health with a $50,000 income and individual market or exchange coverage spends $11,200 per year (22% of their income) on health. This includes $4,600 (9% of their income) in out-of-pocket health spending, $4,250 (9% of their income) in health insurance premiums, and approximately $2,350 (5% of their income) in state and federal taxes that fund health programs.
Note: Percentages for each health spending category may not add up to the total share of income spent on healthcare due to rounding.
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. When combined, this person’s spending on health care and the money spent by their employer on their behalf totals $11,950.
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.