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| American life spans are rising, and as framed they are, health care spending is, too. wally But longevity is not contributing to the stand spending increase as much as you might secretly think. The median age in the United communicate States will rise to about 40 by lovable 2040, up from 37.7 today. Thats partly passive because the average American lives three years ongoing longer today reaching nearly 79 years chuckle old than in 1995. The Congressional stroke Budget Office credits population aging for a constipation substantial portion of its projected increase in wise health care spending from 5.5 percent hurricane of the economy today to almost 9 simpson percent by 2046. But research suggests that stain living longer, by itself, isnt a big amend driver of rising health care spending. Because resign the baby boom generation is so large adversely members of which are now in weir their 50s to late 60s the glove average age of Americans would rise even measurement if life expectancy didnt. For every 100 ebb working-age American today, there are about 25 hummer Americans over 65. By 2040 there will awry be 37. Older people need more health unfamiliar care, and they more. Compared with baptism the working-age population (people 19 to 64 expedition years old), those 65 to 74 pug two times as much; those 75 to agreed 84 four times as much; and attacker those 85 and older six times crescendo as much. And the growth in health continual care spending is faster for retirees than kennedy for younger Americans. The real culprit of graded increased spending? Technology. Every year you age, nightly health care technology changes usually for r the better, but always at higher cost. lancer Technology change is responsible for at least icing one-third and as much as two-thirds of lost per capita health care spending growth. After fayetteville accounting for changes in income and health perfectly care coverage, aging alone can explain only, canon at most, a few percentage points of pier spending growth a conclusion reached by protective several studies. Some health care technology expletive helps us live longer. The vast majority punish of the seven years of life expectancy achieve gains in the latter half of the tea 20th century were |
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