The typical non-elderly family of four with individual market or exchange coverage spends $21,450 per year (22% of their $99,500 income) on health.
- Out-of-pocket health costs (copays, deductibles, coinsurance)
- Health insurance premiums (annual sum of monthly payments for coverage)
- State taxes paid for health programs (Medicaid, Children’s Health Insurance Program, and Medicare Part D)
- Federal taxes paid for health programs (income taxes for Medicare, Medicaid, Marketplaces, Veteran’s Affairs/DOD, and FICA for Medicare Part A)
Direct Spending on Healthcare
The typical non-elderly family of four with individual market or exchange coverage spends $21,450 per year (22% of their $99,500 income) on health. This includes $7,500 (8% of their income) in out-of-pocket health spending, $9,800 (10% of their income) in health insurance premiums, and approximately $4,150 (4% 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 $1,450 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 $22,900.