National Health Spending Up 8.7 Percent Between 2000-2001; Spending for Health Care Will Continue to Grow

Income of the Elderly Population: 2001

June 2003, Vol. 24, No. 6
Paperback, 12 pp.
PDF, 148 kb
Employee Benefit Research Institute, 2003

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Executive Summary

National Health Spending Up 8.7 Percent Between 2000-2001; Spending for Health Care Will Continue to Grow—According to the Centers for Medicare & Medicaid Services (CMS), national health expenditures increased 8.7 percent between 2000 and 2001, reaching more than $1.4 trillion. The private sector accounted for 54.6 percent of national health spending, and the public sector accounted for 45.4 percent. CMS projects that national health spending will be $1.5 trillion in 2002 and $3.1 trillion by 2012. As a percentage of gross domestic product, this expenditure is projected to be 14.8 percent in 2002 and increase to 17.7 percent by 2012.

Income of the Elderly Population: 2001—The median income level of the elderly population increased from $10,949 (in constant 2001 dollars) in 1974 to $13,589 (in constant 2001 dollars) in 1989. It dropped to $12,875 (in constant 2001 dollars) in 1992, rebounding to $13,886 in 1998. By 2001, the median income of the elderly had declined to $13,651. The average income of the elderly followed a similar pattern over this period.