Direct Spending on Healthcare
The typical non-elderly single person in better health with individual market or exchange coverage spends $4,600 per year (18% of their $26,025 income) on health. This includes $1,400 (5% of their income) in out-of-pocket health spending, $1,850 (7% of their income) in health insurance premiums, and approximately $1,350 (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 $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 $5,000.