The typical family of four in better health with individual market or exchange coverage spends $15,900 per year (20% of their $79,630 income) on health.

Direct Spending on Healthcare

The typical family of four in better health with individual market or exchange coverage spends $15,900 per year (20% of their $79,630 income) on health. This includes $4,700 (6% of their income) in out-of-pocket health spending, $7,700 (10% of their income) in health insurance premiums, and approximately $3,500 (4% 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 $1,150 in Medicare payroll taxes, not shown in the chart above. When combined, this family’s spending on health care and the money spent by their employer on their behalf totals $17,050.