Question

What will happen to the aggregate demand for health care as the “baby boom” generation enters old age? Why?

Answer 1

Baby boomer generation is the term used for people born between 1946 and 1964 and made for a major portion of the population in developed nations.This was due to the fact that during the great depression and world war II people decided not to have babies .It was also because people decided to move to the suburbs to bring up a family instead of living in urban areas . Baby boomers will bring a big change in health care as they age.This will put excessive pressure on health care system.The big problem is how medicare will provide for 75 million baby boomers.About 3 million baby boomers will attain retirement age every year for the next years to come.So the problem of caring for the elderly patients is enormous.Huge proportion will move from commercial plans to medicare.The demand for health care will increase.

The boomers have the reputation of having poor health than their parents had because they indulged more than their parents.It has been found that boomers life expectancy rate is more but they suffer from multiple health disorders like hypertension, diabetes, obesity etc.So as boomers age there will be rise in health care cost.So the medicare program will face difficulty dealing with patients with many chronic diseases.Financial burden on health system will be more.Moreover health care system are not designed to diagnose, prevent and treat patients who have many disorders.More medicare eligible Americans will enroll in medicare which will pose a problem in funding medicare.People with many chronic diseases are more vulnerable to fall sick and so the cost is more.

Thus demand for health care will increase as baby boomers enter retirement age.The boomers will pose a challenge for health care.