Direct Spending on Healthcare
A single person in worse health with a $50,000 income and individual market or exchange coverage spends $13,450 per year (27% of their income) on health. This includes $5,900 (12% of their income) in out-of-pocket health spending, $4,500 (9% of their income) in health insurance premiums, and approximately $3,050 (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. When combined, this person’s spending on health care and the money spent by their employer on their behalf totals $14,200.