Direct Spending on Healthcare
A single person with a $50,000 income and individual market or exchange coverage spends $8,950 per year (18% of their income) on health. This includes $2,500 (5% of their income) in out-of-pocket health spending, $3,500 (7% 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.