The typical non-elderly family in the United States with at least one member in worse health spends $10,000 per year (13% of their $75,025 income) on health.

Direct Spending on Healthcare

The typical non-elderly family in the United States with at least one member in worse health spends $10,000 per year (13% of their $75,025 income) on health. This includes $3,900 (5% of their income) in out-of-pocket health spending, $2,900 (4% of their income) in health insurance premiums, and approximately $3,200 (4% 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. On average across all families (including those without employer coverage), we estimate employers contribute $7,400 to health insurance premiums, and that the employer of the typical family illustrated above would contribute an additional $1,100 in Medicare payroll taxes. These amounts are not shown in the chart above.