Direct Spending on Healthcare
The typical non-elderly single person with individual market or exchange coverage spends $5,800 per year (22% of their $26,025 income) on health. This includes $1,950 (7% of their income) in out-of-pocket health spending, $2,150 (8% of their income) in health insurance premiums, and approximately $1,700 (7% 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 $750 in Medicare payroll taxes, not shown in the chart above.