Direct Spending on Healthcare
The typical non-elderly family of four with at least one member in worse health and Medicaid coverage spends $1,150 per year (3% of their $36,773 income) on health. This includes $300 (1% of their income) in out-of-pocket health spending, $0 (0% of their income) in health insurance premiums, and approximately $850 (2% of their income) in state and federal taxes that fund health programs. Note: The average family of four with Medicaid coverage has a $29,032 income, but accounting for negative federal tax liability, this person’s income would be approximately $36,773.
Additional Contributions by Employers
In this scenario, we estimate that the employer is contributing an additional $400 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 $1,550.
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.