OUT-OF-POCKET HEALTH EXPENDITURES BY ELDERLY HOUSEHOLDS - CHANGE OVERTHE 1980S

This study compares out-of-pocket health expenditures of elderly and n onelderly households over the past decade, using descriptive statistic s and two-stage least squares analysis of Consumer Expenditure Survey data for 1980-1981 and 1989-90. This empirical analysis provides a bas is for discussion of both efficiency and equity issues ill health poli cy. We find that increases in out-of-pocket medical care expenditures over the last decade were mainly for insurance premiums rather than me dical goods and services, which indicates potential inefficiencies in health care markets. We also find that Medicare promoted equity of out -of-pocket expenditures on health care among elderly persons over the 1980s, which implies that universal national health insurance would en hance distributional equity.