The aging population has a direct link to the increase in health care expenditures (HCE). As the population ages, so does the need for routine medical care and treatment. Patients have increased co-morbidities that require continued treatment the closer they come to the end of life. That’s not to say that proximity to death of younger patients does not have an effect on HCE, but in the aging population, we see that proximity to death is greater (von Wyl, 2019).
The baby boomers were born between 1946 and 1964. This generation of individuals is now entering retirement and declining in health. It is estimated that since 2011 over 10,000 individuals have reached the age of retirement daily, which will continue for another few years. An issue seen with the older population is that they will wait to seek care. When care is finally sought, it is necessary for hospitalization or extended treatment. (Plawecki & Plawecki, 2015) The federal government estimated that 19% of the gross domestic product will be from HCE and that by 2027 nearly 47% of all healthcare will be financed by federal, state, and local government (CMS, 2020).
Our older patients require multiple resources that are both acute and chronic. Their care changes from being able to be treated and sent home to being treated and sent for skilled care. They can no longer stay home and care for themselves but need health care 24 hours a day. When we are looking at over 3.6 million people per year retiring and having shorter proximity to death, the impact on HCE is extraordinary.
References
CMS. (2020). Projected. Centers for Medicare and Medicaid Services. https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsProjected
Plawecki, H. M., & Plawecki, L. H. (2015). The emerging baby boomer health care crisis. Journal of Gerontological Nursing, 41(11), 3–5. https://doi.org/10.3928/00989134-20151015-22
von Wyl, V. (2019). Proximity to death and health care expenditure increase revisited: A 15-year panel analysis of elderly persons. Health Economics Review, 9(1). https://doi.org/10.1186/s13561-019-0224-z
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