Senior Citizens Doing Better, Health Care Cost a Big
Problem Says Older Americans 2010
July 19, 2010 - Senior citizens in America are
enjoying longer lives, better health and better economic security but
the cost of health care for the elderly has risen dramatically,
according to Older Americans 2010: Key Indicators of Well-Being,
which was released today by the Federal Interagency Forum on
Aging-Related Statistics.
Older Americans 2010, the fifth report prepared by
the Forum since 2000, provides an updated, accessible compendium of
indicators, drawn from the most reliable official statistics about the
well-being of Americans primarily age 65 and older.
The indicators are categorized into five broad
areas—population, economics, health status, health risks and behaviors,
and health care. The 155-page report contains data on 37 key indicators.
“Many of the estimates reported in Older Americans
2010 were collected in 2007 and 2008, the years straddling the
large-scale financial downturn that began in December 2007,” writes
Katherine K. Wallman Chief Statistician Office of Management and Budget,
in the Foreword.
“Thus, although this was an economically
challenging time, the data reported in Older Americans 2010 do not in
all cases reflect this crisis. The Forum did produce a short report,
Data Sources on the Impact of the 2008 Financial Crisis on the Economic
Well-being of Older Americans at the end of 2009 that provides
information about data sources that may shed light on the effects of the
economic downturn on the well-being of older Americans.”
The Forum - a consortium representing 15 agencies
with responsibilities for federal data collection, programs serving
older Americans, and research - assembles these data and makes them
available to a wide constituency including other agencies, policy
makers, researchers, and the public.
Highlights
Older Americans 2010: Key Indicators of Well-Being
is one in a series of periodic reports to the Nation on the condition of
older adults in the United States. The indicators assembled in this
chartbook show the results of decades of progress.
Older Americans are living longer and enjoying
greater prosperity than any previous generation. Despite these advances,
inequalities between the sexes and among income groups and racial and
ethnic groups continue to exist.
As the baby boomers continue to age and America’s
older population grows larger and more diverse, community leaders,
policymakers, and researchers will have an even greater need to monitor
the health and economic well-being of older Americans.
In this report, 37 indicators depict the well-being
of older Americans in the areas of demographic characteristics, economic
circumstances, overall health status, health risks and behaviors, and
cost and use of health care services. Selected highlights from each
section of the report follow.
Population
The demographics of aging continue to change
dramatically. The older population is growing rapidly, and the aging of
the baby boomers, born between 1946 and 1964 (and who begin turning age
65 in 2011), will accelerate this growth. This larger population of
older Americans will be more racially diverse and better educated than
previous generations. Another significant trend is the increase in the
proportion of men age 85 and over who are veterans.
● In 2008,
there were an estimated 39 million people age 65 and over in the
United States, accounting for just over 13 percent of the total
population. The older population in 2030 is expected to be twice as
large as in 2000, growing from 35 million to 72 million and representing
nearly 20 percent of the total U.S. population. (See “Indicator 1:
Number of Older Americans.”)
● In 1965,
24 percent of the older population had graduated from high school, and
only 5 percent had at least a bachelor’s degree. By 2008, 77 percent
were high school graduates or more, and 21 percent had a bachelor’s
degree or more. (See “Indicator 4: Educational Attainment.”)
● The number
of men age 85 and over who are veterans is projected to increase from
400,000 in 2000 to almost 1.2 million by 2010. The proportion of men
age 85 and over who are veterans is projected to increase from 33
percent in 2000 to 66 percent in 2010. (See “Indicator 6: Older
Veterans.”)
Economics
Most older people are
enjoying greater prosperity than any previous generation.
There has been an increase in the proportion of
older people in the high-income group and a decrease in the proportion
of older people living in poverty, as well as a decrease in the
proportion of older people in the low-income group just above the
poverty line.
Among older Americans, the share of aggregate
income coming from earnings has increased since the mid-1980s, partly
because more older people, especially women, continue to work past age
55.
Finally, on average, net worth has increased almost
80 percent for older Americans over the past 20 years. Yet major
inequalities continue to exist with older blacks and people without high
school diplomas reporting smaller economic gains and fewer financial
resources overall.
● Between 1974
and 2007, there was a decrease in the proportion of older people with
income below poverty from 15 percent to 10 percent and with low
income from 35 percent to 26 percent; and an increase in the proportion
of people with high income from 18 percent to 31 percent. (See
“Indicator 8: Income.”)
● In 2007, the
median net worth of households headed by white people age 65 and over
($280,000) was six times that of older black households ($46,000).
This difference is less than in 2003 when the median net worth of
households headed by older white people was eight times higher than that
of households headed by older black people. (See “Indicator 10: Net
Worth.”) The large increase in net worth in past years may not continue
into the future due to recent declines in housing values.
●Labor
force participation rates have risen among all women age 55 and over
during the past four decades. As new cohorts of baby boom women
approach older ages they are participating in the labor force at higher
rates than previous generations. Labor force participation rates among
men age 55 and over have gradually begun to increase after a steady
decline from the early 1960s to the mid-1990s. (See “Indicator 11:
Participation in the Labor Force.”)
Health Status
Americans are living
longer than ever before, yet their life expectancies lag behind those of
other developed nations.
● Older age is
often accompanied by increased risk of certain diseases and disorders.
Large proportions of older Americans report a variety of chronic health
conditions such as hypertension and arthritis. Despite these and other
conditions, the rate of functional limitations among older people has
declined in recent years.
●Life
expectancy at age 65 in the United States is lower than that of many
other industrialized nations. In 2005, women age 65 in Japan could
expect to live on average 3.7 years longer than women in the United
States. Among men, the difference was 1.3 years. (See “Indicator 14:
Life Expectancy.”)
● The
prevalence of certain chronic conditions differs by sex. Women
report higher levels of arthritis (55 percent versus 42 percent) than
men. Men report higher levels of heart disease (38 percent versus 27
percent) and cancer (24 percent versus 21 percent). (See “Indicator 16:
Chronic Health Conditions.”)
● Between 1992
and 2007, the age-adjusted proportion of people age 65 and over with a
functional limitation declined from 49 percent to 42 percent.
(See “Indicator 20: Functional Limitations.”)
Health Risks and Behaviors
Social and lifestyle
factors can affect the health and well-being of older Americans.
These factors include preventive behaviors such as
cancer screenings and vaccinations along with diet, physical activity,
obesity, and cigarette smoking. Health and well-being are also affected
by the quality of the air where people live and by the time they spend
socializing and communicating with others. Many of these health risks
and behaviors have shown long-term improvements, even though recent
estimates indicate no significant changes.
● There was
no significant change in the percentage of people age 65 and over
reporting physical activity between 1997 and 2008. (See “Indicator
24: Physical Activity.”)
● As with other
age groups, the percentage of people age 65 and over who are obese
has increased since 1988–1994. In 2007–2008, 32 percent of people
age 65 and over were obese, compared with 22 percent in 1988–1994.
However, over the past several years, the trend has leveled off, with no
statistically significant change in obesity for older men or women
between 1999–2000 and 2007–2008. (See “Indicator 25: Obesity.”)
● The
percentage of people age 65 and over living in counties that
experienced poor air quality for any air pollutant decreased from 52
percent in 2000 to 36 percent in 2008. (See “Indicator 27: Air
Quality.”)
● The
proportion of leisure time that older Americans spent socializing and
communicating - such as visiting friends or attending or hosting social
events - declined with age. For Americans age 55–64, 13 percent of
leisure time was spent socializing and communicating compared with 8
percent for those age 75 and over. (See “Indicator 28: Use of Time.”)
Health Care
Overall, health care costs have risen
dramatically for older Americans.
In addition, between 1992 and 2006, the percentage
of health care costs going to prescription drugs almost doubled from 8
percent to 16 percent, with prescription drugs accounting for a large
percentage of out-of-pocket health care spending. To help ease the
burden of prescription drug costs, Medicare Part D prescription drug
costs, began in January 2006.
● After
adjustment for inflation, health care costs increased significantly
among older Americans from $9,224 in 1992 to $15,081 in 2006. (See
“Indicator 30: Health Care Expenditures.”)
● From 1977
to 2006, the percentage of household income that people age 65 and over
allocated to out-of-pocket spending for health care services
increased among those in the poor/near poor income category from 12
percent to 28 percent. (See “Indicator 33: Out-of-Pocket Health Care
Expenditures.”)
● The number
of Medicare beneficiaries enrolled in Part D prescription drug plans
increased from 18.2 million (51 percent of beneficiaries) in June 2006
to 22.2 million (57 percent of beneficiaries) in December 2009. In
December 2009, 61 percent of plan enrollees were in stand-alone plans
and 39 percent were in Medicare Advantage plans. In addition,
approximately 6.2 million beneficiaries were covered by the Retiree Drug
Subsidy (See “Indicator 31: Prescription Drugs.”)
How to View the
Full Book
Older Americans 2010: Key Indicators of Well-Being
is available online at
www.AgingStats.gov and in limited quantities in print.
Supporting data for each indicator, including
complete tables, PowerPoint slides and source descriptions, can be found
on the Forum’s website.
Single printed copies of Older Americans 2010: Key
Indicators of Well-Being are available at no charge through the National
Center for Health Statistics while supplies last. Requests may be made
by calling 1-866-441-6247 or by sending an e-mail to nchsquery@cdc.gov.
For multiple print copies, contact Forum staff
director Elena Fazio at (301) 458-4460 or send an e-mail request to
agingforum@cdc.gov.
About the Forum
The Federal Interagency Forum on Aging-Related
Statistics was established in 1986 to improve the quality and utility of
federal data on aging. The 15 agencies that now compose the Forum
include the Administration on Aging, Agency for Healthcare Research and
Quality, Bureau of Labor Statistics, Centers for Medicare & Medicaid
Services, U.S. Census Bureau, Department of Housing and Urban
Development, Department of Veterans Affairs, Employee Benefits Security
Administration, Environmental Protection Agency, National Center for
Health Statistics, National Institute on Aging, Office of Management and
Budget, Office of the Assistant Secretary for Planning and Evaluation
(Department of Health and Human Services), Social Security
Administration and Substance Abuse and Mental Health Services
Administration.
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