Who pays for health care?
How expensive is American health care per person?
For someone working a full time job, 2080 hours per year, around $5 per hour is spent on health care.
This data reminds us that American health care is unnecessarily expensive and that all of us bear the burden of its excessive cost.
How do we seem to share the costs of health care?
Employer-purchased insurance: 49% of Americans
Public insurance paid for through government programs, the two biggest being Medicare and Medicaid: 35% of Americans
Individuals with non-group health insurance: 7% of Americans
Uninsured: 9% of Americans
How do we really share the costs?
Looking at the relative size of insurance programs by the number covered creates a distorted view of who pays. To make the most important point, Medicare and Medicaid cover fewer people than employment-based insurance, but those people are older, poorer, and sicker.
Who really pays for employment-based health care?
Since health care benefits are tax-deductible, unlike wages, companies and workers do not pay taxes on them. For example, if Joe’s base salary is $30,000, and his health plan costs the company $6,000 – a total of $36,000 – Joe’s company is only paying taxes on $30,000. This tax subsidy represented a loss of approximately $250 billion in federal tax revenue from employers in 2013.