The typical non-elderly single person with employer coverage spends $4,650 per year (10% of their $46,000 income) on health.

Direct Spending on Healthcare

The typical non-elderly single person with employer coverage spends $4,650 per year (10% of their $46,000 income) on health. This includes $800 (2% of their income) in out-of-pocket health spending, $1,150 (3% of their income) in health insurance premiums, and approximately $2,700 (6% of their income) in state and federal taxes that fund health programs.

Additional Contributions by Employers

Workers are not taxed on the contributions their employers make toward health insurance premiums. Economists generally believe that employer contributions offset wages. In this scenario, we estimate that the employer is contributing an additional $5,300 to health insurance premiums, as well as $650 in Medicare payroll taxes. These amounts are not shown in the chart above.