A single person in worse health with a $50,000 income and individual market or exchange coverage spends $12,950 per year (26% of their income) on health.

Direct Spending on Healthcare

A single person in worse health with a $50,000 income and individual market or exchange coverage spends $12,950 per year (26% of their income) on health. This includes $6,000 (12% of their income) in out-of-pocket health spending, $4,000 (8% of their income) in health insurance premiums, and approximately $2,950 (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.