Health Care After Retirement: Who Will Pay the Cost

Studies | Health

No. 139
Thursday, June 01, 1989
by John C. Goodman and Gerald Musgrave

Health care spending for the elderly, like Social Security, is financed on a pay-as-you-go basis. Both employees and employers are discourged from putting aside money during an individual's working years to pay for health care during retirement. As a result, each generation of retirees depends on the next generation of workers to pay its medical bills.

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