💵

Healthcare Costs Impacting Older Adults' Needs

Apr 19, 2025

Lecture Notes: Older Adults Sacrificing Basic Needs Due to Healthcare Costs

Key Points Discussed:

Overview:

  • Issue: Older adults in the U.S. are sacrificing basic needs to afford healthcare.
  • Demographic: Focus on Americans aged 50 and older, particularly those aged 50-64.
  • Partnership: Research conducted by West Health and Gallup.

Healthcare Costs and Financial Burden:

  • Two-thirds of older Americans find healthcare costs to be at least a minor financial burden.
  • Four in ten adults report concerns about being unable to pay for future healthcare.
  • Adults 50-64 are especially vulnerable due to ineligibility for Medicare.

Sacrifices Made:

  • Basic Needs: Adults are skipping treatment, medication, and cutting back on food and utilities.
  • Specific Findings:
    • 37% of adults 65+ are worried about affording healthcare services.
    • 45% of adults 50-64 are concerned about future healthcare costs.
    • One in four aged 65+ and three in ten aged 50-64 reduce spending on basic needs like food, utilities, clothing, or medication to pay for healthcare.

Rising Out-of-Pocket Costs:

  • 41% increase in out-of-pocket healthcare expenses for adults 65+ from 2009 to 2019.
  • Medicare Limitations: Only 94% coverage, leading to higher personal expenses.

Population Projections and Impact:

  • By 2030: All baby boomers will be at least 65, increasing the demand and burden of healthcare costs.
  • Financial Stress: Large sections of the elderly population already face stress due to these costs.

Gender and Racial Disparities:

  • Older Women: More likely to cut back on essentials compared to men.
  • Black Americans 50-64: Greater likelihood of sacrificing basic needs compared to White Americans.

Case Examples:

  • Doreen Ferraro: 71-year-old who delayed surgery due to high copay.
  • Lawana Baugus: 61-year-old worried about healthcare costs preventing hospital visits.
  • Arthur Falconer: 78-year-old struggling with healthcare costs against limited retirement funds.

Implications and Future Outlook:

  • Urgent Need: Policymakers need to address high healthcare costs to prevent basic need sacrifices.
  • Comparative Costs: U.S. healthcare costs are higher than other developed countries, but without better outcomes.

Conclusion:

  • Healthcare costs lead to sacrifices that affect the wellbeing of older adults, necessitating policy changes for better affordability and accessibility.

Survey Methodology:

  • Conducted by West Health-Gallup with a sample of 6,663 U.S. adults.
  • Margin of error at 95% confidence level: 2.2 percentage points.

Additional Resources:

  • West Health-Gallup 2021 Healthcare in America Report
  • U.S. Department of Health and Human Services data