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Aging, Age-Specific Health Care Costs and the Future Health Care Burden in Canada

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  • M. S. Marzouk

Abstract

Studies of the impact of aging on health care costs in Canada often assume a constant resource cost of care for the elderly compared to the cost of those under the age of 65. While this assumption enables us to examine the sole impact of demographic shifts, it excludes a sizable component of aging-related health care costs. In this paper, health care expenditures associated with aging are decomposed into the constituent components of demographic shifts and per capita age-specific costs. The impact of changes in both the age profile and in per capita costs on the future health care burden in Canada are simulated under alternative scenarios. The results indicate that projected health care costs associated with aging in Canada are more sensitive to the size of the differential in the growth rate in age specific utilization rates than to the rise in share of the aged population.

Suggested Citation

  • M. S. Marzouk, 1991. "Aging, Age-Specific Health Care Costs and the Future Health Care Burden in Canada," Canadian Public Policy, University of Toronto Press, vol. 17(4), pages 490-506, December.
  • Handle: RePEc:cpp:issued:v:17:y:1991:i:4:p:490-506
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    Citations

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    Cited by:

    1. Frank T. Denton & Byron G. Spencer, 1998. "Economic Costs of Population Aging," Quantitative Studies in Economics and Population Research Reports 339, McMaster University.
    2. Robert L. Brown, 2011. "Economic Security in an Aging Canadian Population," Social and Economic Dimensions of an Aging Population Research Papers 285, McMaster University.
    3. Yu, Tiffany Hui-Kuang & Wang, David Han-Min & Wu, Kuo-Lun, 2015. "Reexamining the red herring effect on healthcare expenditures," Journal of Business Research, Elsevier, vol. 68(4), pages 783-787.
    4. Herbert C. Northcott, 1994. "Public Perceptions of the Population Aging "Crisis"," Canadian Public Policy, University of Toronto Press, vol. 20(1), pages 66-77, March.
    5. Frank T. Denton & Byron G. Spencer, 1999. "Population Aging and Its Costs: A Survey of the Issues and Evidence," Department of Economics Working Papers 1999-03, McMaster University.
    6. Mark W. Rosenberg, 2000. "The Effects of Population Ageing on the Canadian Health Care System," Social and Economic Dimensions of an Aging Population Research Papers 14, McMaster University.
    7. Di Matteo, Livio, 2000. "The determinants of the public-private mix in Canadian health care expenditures: 1975-1996," Health Policy, Elsevier, vol. 52(2), pages 87-112, June.
    8. Jacques Henripin, 1994. "The Financial Consequences of Population Aging," Canadian Public Policy, University of Toronto Press, vol. 20(1), pages 78-94, March.
    9. Wickstrom, Jannie & Serup-Hansen, Niels & Kristiansen, Ivar Sonbo, 2002. "Future health care costs--do health care costs during the last year of life matter?," Health Policy, Elsevier, vol. 62(2), pages 161-172, November.
    10. Di Matteo, Livio & Di Matteo, Rosanna, 1998. "Evidence on the determinants of Canadian provincial government health expenditures: 1965-1991," Journal of Health Economics, Elsevier, vol. 17(2), pages 211-228, April.
    11. Livio Di Matteo & Rosanna Di Matteo, 2001. "Public Homecare Expenditures in Canada," Canadian Public Policy, University of Toronto Press, vol. 27(3), pages 313-333, September.

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