Direct Spending on Healthcare
The typical non-elderly single person with individual market or exchange coverage spends $6,700 per year (22% of their $31,150 income) on health. This includes $2,500 (8% of their income) in out-of-pocket health spending, $2,650 (9% of their income) in health insurance premiums, and approximately $1,550 (5% 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 $450 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 $7,150.
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.