Direct Spending on Healthcare
The typical non-elderly family of four with individual market or exchange coverage spends $20,000 per year (19% of their $108,000 income) on health. This includes $7,250 (7% of their income) in out-of-pocket health spending, $9,200 (9% of their income) in health insurance premiums, and approximately $3,550 (3% 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 $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 $21,550.
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.
