Health Care Reform Project Medical Care for an Aging Population

HealthCareReformProject:Medical Careforan AgingPopulation

HealthCareReformProject:Medical Careforan AgingPopulation

Althoughlivinglonger is a blessing,theimpactof an agingpopulationon thehealthcareexpenditureis currently a troubling issue.Populationaging can beattributedto differentfactorsthat includeimprovementin theincreasesin healthylivingprograms,access,andqualityof healthcare.In thecaseof theUnited States, thebabyboomers are currently turning65 yearsandabove,which is a worryingissueamong thepolicymakers.Studiesindicatethatabout 20 % of theU.S. populationwill be 65 yearsandabove by theyear2013 (Mathews, 2013). Thenumberof seniormembersof thesocietyis not onlyincreasing,buttheseindividualsare alsolivinglonger.Forexample,thelifeexpectancyof menhas increasedfrom 48 yearsin 1900 to 74 yearsandthatof womenfrom 51 to 74 yearsin 2000 (Mathews, 2013).

Seniormembersof thesocietyare morelikelyto sufferfrom diseasesthat are expensiveto treatthan theyoungergeneration.Currently, itis estimatedthatabout 66.67 % of theAmericans aged65 yearsandabove sufferfrom morethan one chronicdisease(Mathews, 2013). Thismakesspecializedgeriatric healthcaremorecriticalin theUnited States. ItisestimatedthatMedicaid andMedicare will drivetheannualhealthcostsby 6.8 % and7.3 % respectively(Gray, 2007). Thismeansthattheincreasein thepopulationof olderadultswill forceboth thestateandthefederalgovernmentsto increasethebudgetary allocations forhealth.

Summaryof theresearcharticles

Consequencesof populationageing on thecostof healthcare

Thearticle“Evaluating theconsequencesof an agingpopulationonthe healthcarecostto Ghana usinginflation-adjusted expenditureanddemographic factors”reportsthefindingsof a researchconductedto determinetheeconomicimplicationsof populationageing. Theresearchwasconductedby Ethel Yiranbon, Henry Antwi, Emmanuel Marfo,andDaniel Offin andpublishedin theInternational Journal of Academic Research in Accounting, Finance,andManagement Science in 2014. Theresearchwasa cohortstudythat involveda 3,159,900 2006 residentsand3,662,148 2013 residents.

Thefindingsof thecohortstudyindicatedthatacutecareexpenditureper capita increasedby 10.2 % eachyear.Otherfactorsheldconstant,populationaging increasestheinflation-adjusted costof healthby 10.9 % per annum (Yiranbon et al., 2014). In addition,thefindingsindicatedthatexpenditureforhospitalcareper decedent increasedfrom $ 13,599 in 2006 to $ 13,624 in 2013. However,thestudyindicatedthatpopulationageing doesnot affectthemedicalexpenditureper capita on thefee-for-service. Populationaging wasstronglyassociatedwith theincreasein expenditureon prescriptiondrugs.In thecaseof Ghana, populationaging wasassociatedwith a 7.5 % increasein theamountspenton prescriptiondrugsbetween 2006 and2013.

Theimpactof populationagingon healthcareexpenditure

MiniarSghariandSami Hammami evaluatedtheeffectsof changesin demography, morbidity, andpracticeson thehealthexpenditurein developednations,includingSweden, Spain, Germany, UK, U.S. The findingsof theresearchwerereportedin thearticle“The impactof agingon healthcareexpenditurein developedcountries”andpublishedin theInternational Journal of Research in Business Management in 2014.Schari &amp Hammami (2014) reportedthatSweden, which is one of thedevelopedcountries,has thelargestshareof theolderadultsthat expectedto growby 11 % by theyear2025. Theresearchalsoindicatedthatthelong-term areandthetotalcarefortheelderlyrepresentsabout 9 % of thetotalGDP.

Surprisingstatistics indicatedthat45 % of thehealthcareexpenditureis directedtowards thecareforolderadultswhiletheper capita expenditureforcitizensaged65 yearsandabove representsabout 3-5 timesthecostof healthexpenditureon thoseagedbelow 65 years(Schari &amp Hammami, 2014).In essence,thestudyindicatedthatthecostof healthhas beenincreasingat a higherratecomparedto therateat which incomehas beenincreasingin all thefive developedcountriesincludedin thestudy.

Therelationshipbetween populationaging andcareexpenditure

AlastairGary investigatedtherelationshipexistingbetween theaging of thepopulationandchangesin theallocation in thehealthcaresector.Thisinvestigationwasreportedin thearticle“Population ageing andhealthcareexpenditure”andreportedin Ageing Horizons in 2007. Gray(2007) identifiedthattheage-related careexpenditurerepresentedabout 19 % of theGDP in thedevelopedcountriesandprojectedthatthisexpenditurewill growto 26 % by theyear2050. Therelationshipbetween aging andtheescalating costof healthisbasedon theideathatolderpeopleare moresusceptibleto diseasescomparedto theyoungerpeople.

Inconclusion,all thestudiesreviewedin thispaperpointto thesamedirectionby indicatingthatpopulationageing ispositivelycorrelatedwith theincreasein thecostof health.Althoughdifferentresearchers makeslightlydifferentprojections,theyallagreethatolderpeoplefallsickquiteoftenthan youngerpeople.

References

Alonso,R. (2014, September 3). Report: Aging population more insured drivingrise in health care spending. NewsHour Production LLC.Retrieved April 4, 2015, fromhttp://www.pbs.org/newshour/rundown/goverment-forecasts-rising-health-care-inflation/

Gray,A. (2007). Population ageing and health care expenditure. AgeingHorizon, 2, 15-20.

Mathews,E. (2013, March 10). How the aging population is changing the healthcare system. EverydayHealth Media, LLC.Retrieved April 4, 2015, fromhttp://www.everydayhealth.com/senior-health/aging-and-health/pressures-on-healthcare-from-booming-senior-population.aspx

Schari,M. &amp Hammami, S. (2014). The impact of aging on health careexpenditure in development. InternationalJournal of Research in Business Management,2 (2), 53-62.

Yiranbon,E., Lulin, Z., Antwi, H., Mafro, E., Amoako, K. &amp Offin, D.(2014). Evaluation the consequences of aging population on healthcare cost to Ghana using inflation-adjusted expenditure anddemographic factors. InternationalJournal of Academic Research in Accounting, Finance, and ManagementSciences,4 (2), 282-290.