The Growing Cost of Aging in America
As baby boomers age, the sheer number of older adults will be unprecedented in U.S. history. The portion of the population living on fixed incomes with high medical expenses will increase as the proportion of seniors — especially those older than 85 — grows. As a result, the health care system and federal programs such as Medicare and Social Security will come under increasing financial strain.
In 2015, there were already 47.8 million people aged 65 and older in the United States.1
An Aging Population
Growth of Population Aged 65 and Over
| Year | Number of People Aged 65 + (Total U.S. Population) |
|---|---|
19802 | 25,549,000 (226,546,000) |
19803 | 31,080,000 (out of 248,718,000) |
19904 | 34,991,753 (out of 281, 421,906) |
20005 | 40,267,984 (out of 308,745,538) |
20106 | 47,760, 852 (out of 321,418,820) |
Projected for 20607 | 98.2 million “People in this age group will comprise nearly one in four of U.S. residents.” |
Growth of Population Aged 85 and Over
| Year | Number of People Aged 85 + (Total U.S. Population) |
|---|---|
19808 | 2,240,000 (out of 226,546,000) |
19909 | 3,022,000 (out of 248,718,000) |
200010 | 4,239,587 (out of 281,421,906) |
201011 | 5,493,433 (out of 308, 745,538) |
201512 | 6,287,161 (out of 321, 418,820) |
Projected for 206013 | 19.7 million |
National Health Costs
Total National Health Expenditures, Historical14 and Projected15
| Year | Amount |
|---|---|
1960 | 27, 214, 000, 000 |
1970 | 74,563,000,000 |
1980 | 255,331,000,000 |
1990 | 721,393,000,000 |
1994 | 967,219,000,000 |
1995 | 1,021,635,000,000 |
2000 | 1,369,125,000,000 |
2005 | 2,023,744,000,000 |
2010 | 2,598,823,000,000 |
2015 | 3,200,815,000,000 |
Projected 2020 | 4,090,900,000,000 |
Projected 2025 | 5,369,800,000,000 |
U.S.Expenditure on Health as Percent Share of GDP16
| 1970 | 6.2% |
|---|---|
1980 | 8.2% |
1990 | 11.3% |
1995 | 12.5% |
2000 | 12.5% |
2005 | 14.5% |
2010 | 16.4% |
2015 | 16.9% |
2016 | 17.2% |
Health Expenditure, Where It Went in 201617
| Percentage of Health Expenditure | Where It Went |
|---|---|
32% | Hospital Care |
20% | Physician and Clinical Services |
4% | Dental Services |
3% | Other Professional Services |
5% | Nursing Care Facilities and Continuing Care Retirement Communities |
8% | Government Administration and Net Cost of Health Insurance |
5% | Investment |
2% | Public Health Activities |
5% | Other Health Residential and Personal Care |
2% | Durable Medical Equipment |
2% | Other Nondurable Medical Products |
3% | Home Health Care |
Cost of Health Care for Aging18
Personal Health Care Spending for Ages 45 – 64 by Source of Payment
| Amount | Source of Payment |
|---|---|
787,562,000,000 | Total All Payers |
393,974,000,000 | Private Health Insurances |
100,422,000,000 | Out-of-Pocket |
85,363,000,000 | Medicare |
96,177,000,000 | Medicaid |
111,627,000,000 | All Other Payers and Programs |
Personal Health Care Spending for Ages 65 – 84 by Source of Payment
627,978,000,000 | Total All Payers |
97,347,000,000 | Private Health Insurances |
94,020,000,000 | Out-of-Pocket |
338,013,000,000 | Medicare |
53,768,000,000 | Medicaid |
44,831,000,000 | All Other Payers and Programs |
Personal Health Care Spending for Ages 85 + by Source of Payment
190,198,000,000 | Total All Payers |
19,416,000,000 | Private Health Insurances |
32,562,000,000 | Out-of-Pocket |
90,541,000,000 | Medicare |
32,093,000,000 | Medicaid |
15,586,000,000 | All Other Payers and Programs |
Prescription Drug Spending by Age and Source of Payment
| Age | Source of Payment | Amount |
|---|---|---|
45-64 | Total All Payers | 105,133,000,000 |
Private Health Insurance | 57,190,000,000 | |
Out of Pocket | 18,912,000,000 | |
Medicare | 17,175,000,000 | |
Medicaid | 6,348,000,000 | |
All Other Payers and Programs | 5,508,000,000 | |
65-84 | Total All Payers | 73,583,000,000 |
Private Health Insurance | 17,670,000,000 | |
Out of Pocket | 14,053,000,000 | |
Medicare | 38,732,000,000 | |
Medicaid | 922,000,000 | |
All Other Payers and Programs | 2,206,000,000 | |
85+ | Total All Payers | 11,150,000,000 |
Private Health Insurance | 2,086,000,000 | |
Out of Pocket | 2,122,000,000 | |
Medicare | 6,352,000,000 | |
Medicaid | 238,000,000 | |
All Other Payers and Programs | 352,000,000 |
1 https://www.census.gov/content/dam/Census/newsroom/facts-for-features/2017/cb17-ff08.pdf
2 https://www2.census.gov/library/publications/1995/compendia/statab/115ed/tables/pop.pdf
3Ibid
4 https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_00_SF1_QTP1&prodType=table
5 https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=PEP_2015_PEPAGESEX&prodType=table
6Ibid
7https://www.census.gov/content/dam/Census/newsroom/facts-for-features/2017/cb17-ff08.pdf
8https://www2.census.gov/library/publications/1995/compendia/statab/115ed/tables/pop.pdf
9https://www2.census.gov/library/publications/1995/compendia/statab/115ed/tables/pop.pdf
10https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_00_SF1_QTP1&prodType=table
11 https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=PEP_2015_PEPAGESEX&prodType=table
12 https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=PEP_2015_PEPAGESEX&prodType=table
13 https://www.census.gov/content/dam/Census/newsroom/facts-for-features/2017/cb17-ff08.pdf
14 https://www.census.gov/library/publications/1995/compendia/statab/115ed.html
15https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsProjected.html
16http://stats.oecd.org/Index.aspx?DataSetCode=SHA#
17https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/Downloads/PieChartSourcesExpenditures.pdf
18https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/Age-and-Gender.html