It has been said, that the cost to Medicare and even to society in general of healthcare of the elderly in this country is “way out of line”. The actual spending of healthcare on the elderly constitutes approximately 1/3 of the total healthcare expenditures on less than 20% of the population. This would imply that more money is spent on time taking care of the elderly than any other age group.
Introduction
The topic of healthcare expenditure on the elderly is a highly debated issue in the United States. It is often argued that the cost to Medicare and society as a whole is “way out of line”, as the spending on healthcare for the elderly makes up a significant portion of total healthcare expenditures. This paper aims to explore the reasons behind the high healthcare spending on the elderly and assess its impact on Medicare and society.
Understanding the Healthcare Expenditures on the Elderly
To better comprehend the healthcare expenditures on the elderly, it is crucial to examine the demographic and healthcare context in which these costs arise. The term “elderly” typically refers to individuals aged 65 and above, who comprise a growing proportion of the population due to increasing life expectancy and the aging baby boomer generation. As a result, healthcare spending on the elderly has been steadily rising in recent years.
According to data from the Centers for Medicare and Medicaid Services (CMS), approximately 1/3 of total healthcare expenditures in the United States are allocated to caring for the elderly, despite the fact that they make up less than 20% of the population. This suggests that a disproportionate amount of money is being spent on healthcare for the elderly compared to other age groups. It is important to note, however, that this discrepancy arises due to several factors.
Factors Contributing to High Healthcare Expenditures on the Elderly
1. Prevalence of Chronic Conditions: As individuals age, they become more susceptible to developing chronic diseases such as heart disease, diabetes, and arthritis. These conditions require ongoing medical care, which significantly contributes to healthcare costs. Elderly individuals often require multiple medications, regular medical appointments, and specialized treatments to manage their chronic conditions effectively.
2. Increased Healthcare Utilization: The elderly tend to utilize healthcare services at a higher rate compared to younger age groups. This can be attributed to the higher prevalence of chronic conditions and the need for regular medical monitoring and intervention. Moreover, older adults are more likely to experience acute health events, such as falls or infections, which require immediate medical attention and hospitalization.
3. Higher Cost of Care: It is well-known that healthcare costs increase with age. This is mainly due to the increased intensity and complexity of medical interventions required by older adults. Procedures such as surgeries, diagnostic tests, and long-term care services are often more expensive for the elderly. In addition, the cost of prescription drugs tends to be higher for this population, particularly for medications used to manage chronic conditions.
4. Medicare Coverage: The Medicare program plays a significant role in funding healthcare for the elderly. However, Medicare is structured to provide comprehensive coverage for a wide range of healthcare services, including hospital care, physician visits, and prescription drugs. This extensive coverage contributes to the high healthcare expenditures on the elderly as it ensures that a considerable portion of their medical expenses is covered by insurance.
Impact on Medicare and Society
The high healthcare expenditures on the elderly have notable implications for both the Medicare program and society as a whole.
1. Strain on Medicare Budget: The increasing healthcare costs for the elderly put a strain on the Medicare budget. As the elderly population continues to grow, the demand for healthcare services and funding from Medicare will also increase. This could potentially lead to financial challenges for the program, necessitating policy interventions to ensure its long-term sustainability.
2. Inter-generational Equity: The allocation of a significant portion of healthcare funds to the elderly raises concerns regarding inter-generational equity. Some argue that by spending a substantial amount of resources on the elderly, younger generations may be deprived of access to adequate healthcare services. This issue becomes more salient as healthcare costs continue to rise, and the working-age population has to shoulder the burden of financing healthcare for the elderly.
Conclusion
In conclusion, the high healthcare expenditures on the elderly can be attributed to various factors, including the prevalence of chronic conditions, increased healthcare utilization, higher cost of care, and the comprehensive coverage provided by Medicare. These expenditures have significant implications for the Medicare program and society, including financial strain on the Medicare budget and concerns regarding inter-generational equity. It is essential to carefully consider these factors and develop strategies to manage healthcare costs effectively while ensuring access to quality care for the elderly population.