The typical family of four in better health with individual market or exchange coverage spends $21,050 per year (21% of their $99,500 income) on health.

Direct Spending on Healthcare

The typical family of four in better health with individual market or exchange coverage spends $21,050 per year (21% of their $99,500 income) on health. This includes $7,200 (7% of their income) in out-of-pocket health spending, $9,700 (10% of their income) in health insurance premiums, and approximately $4,150 (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 $1,450 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 $22,500.

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.

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