National Institute of Aging Highlights Healthcare and Housing Costs

The National Institute of Health report released in March 2008 Highlights Healthcare and Housing Costs in Americans aged 65 and older. Health care costs, particularly for prescription drugs, have risen dramatically for older Americans. Between 1992 and 2004, average inflation-adjusted health care costs for older Americans increased from $8,644 to $13,052. In 2004,61% of out-of-pocket health care spending by the elderly was spent on prescription drugs. These numbers do not include health insurance premiums. However,out-of-pocket costs for prescription drugs are expected to decline because of the savings available through the Medicare prescription drug program. Currently,thera are about 19.7 million members,with two-thirds selecting stand-alone plans and one-third in Medicare Advantage plan.:
Housing. Most older people live in adequate, affordable housing. However, a significant percentage has housing-related issues that can pose problems to an older person’s physical or psychological well-being. In 2005, 41 percent of households with people over age 65 had expenditures on housing and utilities that exceed 30 percent of household income, physically inadequate housing and crowded housing. The prevalence of housing cost burden for households with people age 65 and over increased from 30 percent in 1985 to 38 percent in 2005.
As the National Institute of Aging Report suggests, the baby boomers are aging, and we will need to find viable solutions to help deal with the healthcare and housing costs of our aging population.