Direct Spending on Healthcare
The typical non-elderly single person with Medicaid coverage spends $500 per year (5% of their $10,050 income) on health. This includes $250 (2% of their income) in out-of-pocket health spending, $0 (0% of their income) in health insurance premiums, and approximately $250 (2% of their income) in state and federal taxes that fund health programs.
Note: The average individual with Medicaid coverage has a $9,650 income, but accounting for negative federal tax liability, this person’s income would be approximately $10,050.
Additional Contributions by Employers
In this scenario, we estimate that the employer is contributing an additional $150 in Medicare payroll taxes, not shown in the chart above.