The Effect of Population Aging on Healthcare Expenditure from a Healthcare Demand Perspective Among Different Age Groups: Evidence from Beijing City in the People's Republic of China

Abstract

Background

With population aging (PA), the healthcare expenditure (HE) increases. The aim of this study is to analyze the HE of different age groups and the effect of age on HE among different age groups.

Methods

Combining PA and HE data, this study used the fixed effect model and parameter estimation method to evaluate the influence of different age groups on HE from 2008 to 2014.

Results

The age effect of HE for the population aged 65 or over was the most significant among the different age groups. Based on PA and HE data, HE per capita of the age group 65 years or over is 7.25 times as much as the population aged < 25 years, 1.61 times as much as the population aged 25~59 years, and 3.47 times as much as the population aged 60~64 years. Based on the result of the fixed effect model, HE per capita of the age group <25 years was 218.39 Yuan (CNY) (USD $31.2). HE per capita of the age group 25~59 years old increased to 1,548.62 Yuan (CNY) (USD $221.2). HE per capita of the 60~64 years age group will be 921.56 Yuan (CNY) (USD $131.7), 4.22 times as much as that of the age group < 25 years. HE per capita in the age group of 65 years or over is 2,538.88 Yuan (CNY) (USD $362.7), 11.63 times as much as that of the age group <25 years.

Conclusion

The results suggest that PA in China is intensifying. In order to control the rising of HE, the government should not only address the supply side such as reforming medical insurance payment, developing new technologies, but also focusing on solving the demand side such as improving the quality of healthcare services, solving environmental pollution, and improving the residents’ health.

Keywords:

• population aging
• healthcare demand
• healthcare expenditure
• different age groups
• fixed effect model
• parameter estimation method

Acknowledgments

We thank the Healthcare Insurance Administration of Beijing for cooperation and organizing data collection. We would also like to thank all study participants for their time while being interviewed.

Abbreviations

PA, population aging; HE, healthcare expenditure; GDP, gross domestic product; UEBMI, Urban Employee Basic Medical Insurance.

Data Sharing Statement

Data and materials accessed from the Healthcare Insurance Administration of Beijing are freely available.

Ethics Approval and Consent to Participate

The study was exempt from human subjects’ approval (non-identifiable data; not human subjects).

Author Contributions

All authors made a significant contribution to the work reported, whether that was in the conception, study design, execution, acquisition of data, analysis and interpretation, or in all these areas; took part in drafting, revising or critically reviewing the article; gave final approval of the version to be published; have agreed on the journal to which the article has been submitted; and agree to be accountable for all aspects of the work.

Disclosure

The authors report no conflicts of interest.