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The Effect of Population Aging on Healthcare Expenditure from a Healthcare Demand Perspective Among Different Age Groups: Evidence from Beijing City in the People’s Republic of China

Authors Li L, Du T, Hu Y

Received 8 July 2020

Accepted for publication 14 August 2020

Published 31 August 2020 Volume 2020:13 Pages 1403—1412


Checked for plagiarism Yes

Review by Single anonymous peer review

Peer reviewer comments 2

Editor who approved publication: Professor Marco Carotenuto

Lele Li,1 Tiantian Du,2 Yanping Hu3

1School of Public Policy and Management, Tsinghua University, Beijing 100084, People’s Republic of China; 2Institute for Hospital Management, Tsinghua University, Shenzhen City 518055, Guangdong Province, People’s Republic of China; 3Department of Medical Engineering, China-Japan Friendship Hospital, Beijing 100029, People’s Republic of China

Correspondence: Yanping Hu Email

Background: With population aging (PA), the healthcare expenditure (HE) increases. The aim of this study is to analyze the HE of different age groups and the effect of age on HE among different age groups.
Methods: Combining PA and HE data, this study used the fixed effect model and parameter estimation method to evaluate the influence of different age groups on HE from 2008 to 2014.
Results: The age effect of HE for the population aged 65 or over was the most significant among the different age groups. Based on PA and HE data, HE per capita of the age group 65 years or over is 7.25 times as much as the population aged < 25 years, 1.61 times as much as the population aged 25∼ 59 years, and 3.47 times as much as the population aged 60∼ 64 years. Based on the result of the fixed effect model, HE per capita of the age group < 25 years was 218.39 Yuan (CNY) (USD $31.2). HE per capita of the age group 25∼ 59 years old increased to 1,548.62 Yuan (CNY) (USD $221.2). HE per capita of the 60∼ 64 years age group will be 921.56 Yuan (CNY) (USD $131.7), 4.22 times as much as that of the age group < 25 years. HE per capita in the age group of 65 years or over is 2,538.88 Yuan (CNY) (USD $362.7), 11.63 times as much as that of the age group < 25 years.
Conclusion: The results suggest that PA in China is intensifying. In order to control the rising of HE, the government should not only address the supply side such as reforming medical insurance payment, developing new technologies, but also focusing on solving the demand side such as improving the quality of healthcare services, solving environmental pollution, and improving the residents’ health.

Keywords: population aging, healthcare demand, healthcare expenditure, different age groups, fixed effect model, parameter estimation method

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