Are wealthier elderly healthier? : a statistical analysis of AHEAD data

Abstract

This thesis examines the relationship between health and wealth of the elderly who are aged 70 or more through an interaction with socio-economic status, wealth depletion, and out-of-pocket expenses for health services rendered. For the analysis, the data set of Wave 1 and Wave 2 of the AHEAD (Asset and Health Dynamics of the Oldest Old) funded by the National Institute of Aging were employed. The results showed strong evidence to support the existence of a positive relationship between current health status and the socioeconomic status. Elderly with higher socio-economic status had better health status. On the other hand, those with poor health conditions had less wealth. Elderly with Medicaid spent less out-of-pocket expenses, however, elderly with Medicare or government insurance or other insurance spent the similar amount of out-of-pocket expenses compared to those without such coverage.