Getting Old Fast

So there it is, folks. The trend that spells disaster for our healthcare system. Do you see it? It's that bright red line through the middle of the graph that runs counter to all the other lines. What is it? It is the line that represents the percentage of our national population taken up by people 65 and older. According to AHRQ, in 2002 about 13 percent of our population was 65 or older--yet they were responsible for 36% of our healthcare expenditures as a country. By 2030—merely 20 years from now—those over 65 will account for nearly 20% of the population according to the US Census.

But what is really scary is that people 65 and older spend, on average, more than three times the amount on healthcare as their “working adult” counterparts who are 18-65. According to the AHRQ data from 2002, people 65 and older cost just more than $11,000 per year, while “working adults” cost about $3,350. When in the 2030’s we reach nearly 375 million Americans, 19.1% of our population will be 65 or older, each of whom will cost more than three times the amount of their “working adult” counterparts. The net result? In 2030 more than 50% of our healthcare dollars will be spent people 65 or older. Of course, this assumes that healthcare costs for older and younger American’s increase at the same rate. In fact, the rate of increase in healthcare costs for the elderly has far outstripped the increases in healthcare for the non-elderly, so we should only expect this trend to get worse the longer we wait.