A single person with a $50,000 income and individual market or exchange coverage spends $10,000 per year (20% of their income) on health.

Direct Spending on Healthcare

A single person with a $50,000 income and individual market or exchange coverage spends $10,000 per year (20% of their income) on health. This includes $2,450 (5% 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 $10,750.