Out-of-Pocket Health Expenditure Differentials Between Elderly and Non-Elderly Households

Regression analysis was used to compare out-of-pocket health expenditures between lower and higher income elderly and non-elderly households. Race and housing tenure were significant determinants for both age groups, but assets, education, and family size were significant only for the non-elderly. Analysis of out-of-pocket health costs indicated greater equity among elderly persons, probably due to Medicare, but income elasticities revealed that health spending is a luxury for lower income elderly households.