Are healthcare expenditures increasing faster for the elderly than the rest of the population?

Abstract

The debate about whether health expenditures will increase more or less for the old is conceptually confused because the participants focus on different factors, use different assumptions and, finally, do not connect the predictions to more general theories of demand for health services. Some focus on increases in life expectancy and how this will change the distribution of end-of-life costs. Others focus on how changes in income and technology will affect the relationship between age and health spending. Higher income, and a larger share of the population, will make it more profitable to invest in treatments aimed at old people, which will lead to steepening in some age groups, but a flattening in other age groups.

Keywords::

• elderly
• expenditure profile
• health expenditure
• red herring
• steepening

Financial & competing interests disclosure

The author has no relevant affiliations or financial involvement with any organization or entity with a financial interest in or financial conflict with the subject matter or materials discussed in the manuscript. This includes employment, consultancies, honoraria, stock ownership or options, expert testimony, grants or patents received or pending or royalties.

No writing assistance was utilized in the production of this manuscript.