The typical non-elderly family of four in better health with individual market or exchange coverage spends $19,500 per year (18% of their $108,000 income) on health.

Direct Spending on Healthcare

The typical non-elderly family of four in better health with individual market or exchange coverage spends $19,500 per year (18% of their $108,000 income) on health. This includes $6,800 (6% of their income) in out-of-pocket health spending, $9,150 (8% of their income) in health insurance premiums, and approximately $3,550 (3% of their income) in state and federal taxes that fund health programs.

Note: Percentages for each health spending category may not add up to the total share of income spent on healthcare due to rounding.

Additional Contributions by Employers

In this scenario, we estimate that the employer is contributing an additional $1,550 in Medicare payroll taxes, not shown in the chart above. When combined, this family’s spending on health care and the money spent by their employer on their behalf totals $21,050.