Direct Spending on Healthcare
The typical non-elderly single person in better health with Medicaid coverage spends $400 per year (4% of their $9,464 income) on health. This includes $150 (2% of their income) in out-of-pocket health spending, $0 (0% of their income) in health insurance premiums, and approximately $250 (3% of their income) in state and federal taxes that fund health programs.
Note: The average individual with Medicaid coverage has a $9,000 income, but accounting for negative federal tax liability, this person’s income would be approximately $9,464.
Additional Contributions by Employers.
In this scenario, we estimate that the employer is contributing an additional $150 in Medicare payroll taxes, not shown in the chart above.