Direct Spending on Healthcare
The typical non-elderly single person with Medicaid coverage spends $550 per year (5% of their $11,591 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 $300 (3% of their income) in state and federal taxes that fund health programs.
Note: The average individual with Medicaid coverage has a $11,262 income, but accounting for negative federal tax liability, this person’s income would be approximately $11,591.
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. When combined, this person’s spending on health care and the money spent by their employer on their behalf totals $700.
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.