How Much Does the Average Senior Spend on Health Care?

Many major expenses only shrink once you retire, but health care is hardly one of them.

U.S. households led by someone who is 65 or older spend an average of $6,833 a year on health care, according to the Bureau of Labor Statistics’ latest data on consumer spending, which is for 2019.

That translates to 13.6% of all spending by senior households and makes health care the third-biggest spending category among those households. Only housing and transportation account for bigger shares of seniors’ spending, as we detail in “Here’s How Much Retiree Households Spend in a Year.”

By comparison, all U.S. households spend an average of $5,193 a year on health care, which translates to 8.2% of spending across all households.

Following is a detailed look at how senior households’ medical spending breaks down.

Health insurance

Average spending for a U.S. household led by someone age 65 or older: $4,748 per year

Average spending across all U.S. households: $3,529 per year

Insurance is easily the largest health care expenditure for households of any age, but it’s highest for senior households. On average, they spend $4,748 — about $396 a month — on insurance. That’s 9.5% of their total spending.

As defined by the Bureau of Labor Statistics, the expense of health insurance includes various types of insurance — including traditional fee-for-service health plans, HMOs and supplemental Medicare plans, for example.

Medical services

Average spending for a U.S. household led by someone age 65 or older: $1,054 per year

Average spending across all U.S. households: $984 per year

As defined by the Bureau of Labor Statistics, this type of health care expense includes a wide variety of care, including:

• Hospital room and services
• Services from physicians and other professionals
• Eye and dental care
• Lab tests and X-rays
• Medical care in a retirement community
• Care in a convalescent or nursing home

Drugs

Average spending for a U.S. household led by someone age 65 or older: $737 per year

Average spending across all U.S. households: $486 per year

Drug spending includes spending on prescription and nonprescription medications as well as vitamins.

While senior households are spending about $61 a month on drugs alone, there are numerous ways anyone can cut their drug costs — including some ways you might not realize exist.

Money Talks News has covered the topic extensively. See for example:

• “5 Ways I Slashed My Drug Costs up to 50%“
• “4 Grocery Store Chains That Offer Free Prescription Drugs“

Medical supplies

Average spending by a U.S. household led by someone age 65 or older: $293 per year

Average spending across all U.S. households: $194 per year

This type of spending covers:

• A variety of supplies, including dressings, antiseptics, bandages, first aid kits, syringes, ice bags, thermometers, sun lamps and heating pads
• Medical appliances — such as braces, canes, crutches, walkers, eyeglasses and hearing aids
• Rental and repair of medical equipment

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