Healthcare needs may make up half of what seniors consume by 2024, according to a study from the National Center for Policy Analysis. For those aged 75 years and older, healthcare already makes up more than half of what they consume.
For the oldest seniors, healthcare spending is higher than spending on housing, food, savings and taxes combined,'' said Andrew Rettenmaier, executive associate director of the Private Enterprise Research Center at Texas A&M University and an NCPA senior fellow who co-authored the report. However, most of the money spent on seniors healthcare comes from sources other than their own.
Seniors medical expenses are paid by Medicare, Medicaid and former employer health plans, in addition to out-of-pocket spending and premium payments, the study indicated.
The study found that seniors currently spend about 45% of their Social Security benefits on healthcare, a percentage that will increase to nearly 61% in 2030. By 2070, close to 94% of seniors Social Security checks will be devoted to spending on healthcare. -- by Jennifer Lubell