Health care expenditures for the elderly: a current and future dilemma

Financing health care for the elderly is becoming a familiar topic in the popular press. Considering that those aged 65 yr and older constitute 12% of the population and consume about 30% of all health care expenditures, health care financing for the elderly makes a timely and interesting topic. In this paper the financing issue is addressed. With the elderly, on average, becoming more affluent, the issue of self-financing must be explored. This of course does not mean the elimination of Medicare but possibly development of a different/alternative approach. As part of our analysis, the potential political pressure from the younger generation is considered.