The typical non-elderly single person with individual market or exchange coverage spends $4,950 per year (19% of their $26,025 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 single person with individual market or exchange coverage spends $4,950 per year (19% of their $26,025 income) on health. This includes $1,750 (7% 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 person’s spending on health care and the money spent by their employer on their behalf totals $5,350.