Direct Spending on Healthcare
A single person with a $50,000 income and individual market or exchange coverage spends $11,000 per year (22% of their income) on health. This includes $2,750 (6% of their income) in out-of-pocket health spending, $5,450 (11% of their income) in health insurance premiums, and approximately $2,800 (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 $11,750.
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.