UM21-09: The Impact of Medical Spending Shocks on the Wealth and Insurance Purchases of Older Americans
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.