The expansion of Social Security is an important reason why U.S. health spending has increased so much

In recent decades, spending on healthcare in the U.S. has continued to rise to unprecedented levels, raising questions over the sustainability of an ageing population. Kai Zhao investigates why this increase has been so dramatic, and using new research, argues that the dramatic expansion of Social Security may be one of the main causes. He explains that Social Security’s expansion means more money is redistributed towards the elderly, who are also more likely to spend more on healthcare than younger groups. The growth in Social Security also means that health spending growth has been much faster among the elderly than among the non-elderly.