Consequences of an Older Population - Research Paper Example

 276883 Abstract The research would proffer pertinent issues on the consequences of an older population. Issues to be explored and discussed would include the possible increased burden on the younger population to compensate for health care cost and lost income, housing needs, and a lesser population contributing to Social Security, which will be supporting a larger population. Likewise, the discourse would address the political embattlement related to programs for the aged (i.e. Medicaid, Medicare, Disability, Welfare and Supplemental Security Income, and The Older Americans Act). Options that could be helpful in relieving this potential burden, in terms of increased taxes, Social Security reform, and reduction in assistance would also be discussed. Consequences of an Older Population Diverse studies have been undertaken to closely monitor factors that influence living conditions of a population. With vast developments that have been achieved over the past centuries, medical breakthroughs and improved nutrition, concurrent with other innovative products and services have resulted in an increasing percentage of aging population worldwide. The study conducted by the collaborative agencies on aging under the U.S. Department of Health and Human Services revealed that most significant increases in the number of people aged 65 and above were identified in developing nations where the percentage increase is projected to reach 140% by the year 2030 (US DHHS, n.d, 2). It has been the natural desire of humans to live a productive and rewarding life for a long time. However, despite the obvious benefits of a long life, there are consequences that should be evaluated in the light of its impact from various perspectives. In this regard, the current study aims to would proffer pertinent issues on the consequences of an older population. Issues to be explored and discussed would include the possible increased burden on the younger population to compensate for health care cost and lost income, housing needs, and a lesser population contributing to Social Security, which will be supporting a larger population. Likewise, the discourse would address the political embattlement related to programs for the aged (i.e. Medicaid, Medicare, Disability, Welfare and Supplemental Security Income, and The Older Americans Act). Options that could be helpful in relieving this potential burden, in terms of increased taxes, Social Security reform, and reduction in assistance would also be discussed. Finally, from the information gathered from scholarly sources, the paper would propose viable and validated measures to address the significant onus of an aging population. Causes of an Increasing Aging Population The study conducted by Schrier (n.d.) identified a significant cause for the aging population being “the long-term historical decline in the fertility of the population. In other words, the falling birth rate is responsible for fewer children in the population, and this, in turn, means that the older age groups will form a larger share” (Schrier, n.d, 3). This was supported by the discourse entitled Demographics of an Aging Population provided a clear explanation for the rationale for population age structures in both mortality and fertility transformations, known as demographic transitions (Demographics, n.d). It was reported that the decline in rates of mortality were contributed by improved medical breakthroughs, immunizations, personal hygiene and public focus on health and cleanliness of the environment, that enabled people to survive from various diseases. On the other hand, fertility rates declined due to an interplay of economic and social factors. The need to generate more income for the family led to women joining the work force thereby leaving lesser time for child bearing and rearing, especially in developed countries. Trends in Global Aging The US DHHS (n.d.) have revealed trends in global aging, to wit: (1) “the overall population is aging; (2) life expectancy is increasing; (3) the number of oldest old is rising; (4) noncommunicable diseases are becoming a growing burden; (5) some populations will shrink in the next few decades; (6) family structures are changing; (7) patterns of work and retirement are shifting; (8) social insurance systems are evolving; and (9) new economic challenges are emerging” (US DHHS, n.d, 3). These significant patterns validate the need to closely monitor contributory factors the increase the rates of the aging population as identified to create repercussive effects on various sectors of an economy. Statistics of an Aging Population The study written by Vincent and Velkoff (2010) revealed that “between 2010 and 2050, the United States is projected to experience rapid growth in its older population. In 2050, the number of Americans aged 65 and older is projected to be 88.5 million, more than double its projected popula­tion of 40.2 million in 2010” (1). Aside from the sheer increase in numbers, the same report indicated that diversity in racial and ethical orientations of the older population would likewise be manifested. Further, current trends in female older population exceeding the life expectancies of their male counterparts are seen to continue with a narrowing gap over the projected four decades (Vincent and Velkoff, 2010, 8). Although these patterns reveal a successful manifestation of overcoming death through improved access to health services and amenities accorded by developments in technology, serious effects are seen to influence future availment of social security and health benefits, among others. Consequences of an Older Population The effect of an aging population could be felt in terms of significant impacts in various sectors of the economy. The research of Schrier (n.d.) categorized the consequences according to health care, education and social services. On the other hand, Foot (2008), averred that there would be marked changes in the lifestyle of future generations due to the aging population. He indicated that “an aging workforce means slower labour force growth while the impending retirement of the baby boom generation presents the possibility of emerging labour market shortages, most significantly in the area of health care. As commentator Susan McDaniel remarked, the growing diversity of circumstances among the elderly and the capacity of families to provide care across generations also affect how the policy implications of an aging population will play out” (Foot, 2008, 2). A. Health Care There is the projected increase in health care costs associated with an aging population. The US DHHS clearly enumerated its implications, to wit: (1) pensions and retirement income will need to cover a longer period of life; (2) health care costs will rise even if disability rates decline somewhat (US DHHS, n.d, 10); (3) the components in health care expenditures that are seen to rise is explained in greater access to health care services and the use of highly advanced technological diagnostic and laboratory procedures (Schrier, n.d, 5); (4) “not securing adequate funding, suggesting that the baby boom generation will finance the lion’s share of its health care costs via taxes collected on current income and future RRSP withdrawals” (Foot, 2008, 3). As revealed, not only would there be challenges in terms of the amount and volume of health care services needed by the aging population; but more so, on the source of funds to support and sustain their health care needs. B. Education An initial review of the trends could mislead readers into a downward trend in educational costs due to the greater portion and percentage of the population classified as old. However, Schrier (n.d.) emphasized that there is a projected trend towards increased participation of the older population deciding to avail of higher education. As noted, “students are becoming more aware of the value of an education and the difficulties in finding employment without one, and they are electing to remain in school longer” (Schrier, n.d, 7). This trend was validated by the Quacquarelli Symonds (QC) Top Grad School entitled “Can you ever go back? Graduate study later in life”, that revealed the increasing number of older students opting to study later in life, to wit: “older candidates tend to be more focused and less likely to succumb to the financial pressures of their younger counterparts. They can also draw on a range of professional and personal experiences often relevant to their graduate field of study” (QC, par. 3). Consequently, higher educational costs are seen to be prevalent with an aging population. C. Social Services With increasing numbers of the population seen to retire in the next few decades, the amount of income projected to be generated and channeled to the economy is lesser. The US DHHS (n.d.) study validated this contention as it reported that “as countries reach a relatively high level of population aging, the proportion of workers tends to decline… And in countries where tax hikes are needed to pay for transfers to growing older populations, the tax burden may discourage future workforce participation” (US DHHS, n.d, 24). Political Embattlement related to Programs for the Aged The information provided by the Center for Diseases and Control (CDC) such as enrollment and availment of benefits through the following programs Medicaid, Medicare, Disability, Welfare and Supplemental Security Income, and The Older Americans Act are seen to follow the increasing trend in the rate of aging population. As indicated in the article written by Wiener and Tilly (2002), the aging population in the US is foreseen to “place substantial additional pressure on publicly-funded health, long-term and income support programmes for older people” (Wiener and Tilly, 2002, par. 1). In evaluating financing costs related to health care in the US, Flier (2009), in his professional stance as a medical practitioner recommended that the following measures would address political embattlement in the programs earmarked for the elderly: (1) a review and possible restructuring of the tax shelter system to apply more equitably to the workforce; (2) to encourage more institutions and suppliers of products and services that would competitively enhance health care players aiming to reduce exorbitant health care costs; and (3) to undertake the potential reforms in both Medicare and Medicaid programs to focus on the quality, frequency and amount of expenditures, including screening qualified beneficiaries to suggest alternative options to reduce health care costs and effective interventions, as immediately required. As aptly evaluated by Weiner and Tilly (2002), “Medicare and long-term care expenditures as a proportion of GDP is projected to increase more than Social Security because of the assumption that average health care costs per person will increase considerably faster than per capita GDP. Projections of Medicare costs 50 years into the future depend heavily on this assumption, which is very uncertain and has fluctuated wildly” (1). In this regard, the problems of supporting and sustaining these programs are inherently uncertain as future trends show marked increases of the population needed to avail them. Options to Relieve Potential Burdens There are proposed measures to address the impending dilemma posed by an increasingly aging population. Aside from those enumerated by Flier (2009) to assist in attacking the root causes of funding and looking for financial sources to support and sustain health care in the US, other alternatives require a combination of strategies and efforts for effective relief of the potential burden. Shrier (n.d) suggested focusing on improving efficiency and in activities that would significantly enhance revenues through fiscal policies and regulations (9). Foot (2008) recommended three policy proposals to wit: (1) a closer evaluation and reform to be instituted in the migration protocols; (2) to encourage older employees to be retained as active participants of the workforce; and (3) to train new staff members to man the health care industry (Foot, 2008, 4). Recommendations and Conclusion The strategies to mitigate the effects of the increasing aging population are collaborative efforts of governments all over the world. Various sectors need to be prepared and improved to assist in supporting and sustaining the needs of the aging population. As mentioned in the US DHHS (n.d.) report, “financial markets need to be flexible and innovative to meet the needs of aging populations” (25). Although a significant factor of the financial expenditure is accounted by the aging population, the public must be made aware that the root causes for rising costs of health care should be accounted to “the confluence of rapid technological advance and intense commercialism in medicine, which together may be the most critical factor underlying America’s swelling health care sector” (Siegel, et.al, 2008, 645). Control of these expenditures in conjunction with health reform would help address the financing of health care in the US. Therefore, more extensive efforts must be focused to seek for alternative means to increase revenues through the generation of taxes. Aside from efficiency measures, the approach suggested by Flier (2009) would serve as a guiding tool for policy makers to design more equitable tax system that would not only protect and shield largely profitable organizations. The objective should be to create policies and regulations that would ensure that appropriate funding sources are addressed to lift the burden from the younger generation, who are envisioned to provide holistic support to the aging population in the future. References Demographics of an Aging Population. (n.d.). Retrieved 14 April 2011. < http://www.ageworks.com/course_demo/200/module2/module2.htm#change> Flier, J.S. (2009). “Health care reform: without a correct diagnosis, there is no cure.” Journal of Clinical Investigation, 119(10), pp. 2850–2852 Foot, D.K. (2008). Some Economic and Social Consequences of Population Aging. Retrieved 14 April 2011. < http://www.irpp.org/cpa/briefs/foot.pdf> Quacquarelli Symonds (QC) Top Grad School (2010). “Can you ever go back? Graduate study later in life.” Quacquarelli Symonds Limited. 14 April 2011. Schrier, D. (n.d.) Consequences of an Aging Population: Can Existing Levels of Social Services be Sustained? Retrieved 14 April 2011. < http://www.bcstats.gov.bc.ca/data/pop/pop/agingpop.pdf> Siegel, B., Mead, H. and Burke, R. (2008). “Private Gain and Public Pain: Financing American Health Care.” Journal of Law, Medicine & Ethics, pp. 644 – 651. U.S. Department of Health and Human Service (US DHHS) (n.d.). Why Population Aging Matters: A Global Perspective. Retrieved 15 April 2011. < http://www.nia.nih.gov/NR/rdonlyres/9E91407E-CFE8-4903-9875-D5AA75BD1D50/0/WPAM.pdf> Vincent, G.K. and Velkoff, V.A. (2010). THE NEXT FOUR DECADES: The Older Population in the United States: 2010 to 2050. Retrieved 14 April 2011. < http://www.census.gov/prod/2010pubs/p25-1138.pdf> Weiner, J.M. and Tilly, J. (2002). “Population ageing in the United States of America: implications for public programmes.” International Journal of Epidemiology, 31 (4): 776-781. Read More