Direct Spending on Healthcare
The typical family of four with at least one member in worse health and Medicaid coverage spends $1,400 per year (4% of their $39,263 income) on health. This includes $450 (1% of their income) in out-of-pocket health spending, $0 (0% of their income) in health insurance premiums, and approximately $950 (2% of their income) in state and federal taxes that fund health programs.
Note: The average family with Medicaid coverage has a $34,404 income, but accounting for negative federal tax liability, this family’s income would be approximately $39,263.
Additional Contributions by Employers
In this scenario, we estimate that the employer is contributing an additional $500 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 $1,900.