Options to Control the Rising Health Care Costs of Older Americans

WILL OUR economy be able to withstand the increasing health care costs of older Americans? These per capita costs increase as a function of the age of our adult population and escalate rapidly in the last years of life. For example, the average Medicare reimbursement per person for those aged 65 to 66 years is $1239 compared with an average cost of $2583 for those aged 85 years and older.¹The future growth of the population of those aged 85 years and over, a group frequently referred to as the "oldest old," will have a substantial impact on future health care costs. This age group is currently the fastest growing age cohort in the United States,²and it is projected to grow from 2.5 million persons in 1980 to as high as 24 million persons by the year 2040.³The current health care needs of this group