The Impact of Medical Spending Shocks on the Wealth and Insurance Purchases of Older Americans

Published: 2021
Project ID: UM21-09


Using data from the Health and Retirement Study (HRS) and the Medicare Current Beneficiary Survey (MCBS), this project will estimate a dynamic model of medical spending and how medical spending shocks affect the wealth and insurance purchases of older Americans. Our analysis will proceed in three steps. First, it will estimate a dynamic model of total medical spending. Second, it will estimate how total medical spending, in combination with insurance purchases and household wealth, impacts out-of-pocket medical spending. Third, it will estimate how out-of-pocket medical spending risk affects household wealth and insurance purchases.