Examining the Relationship Between Population Aging and Health Expenditures in Countries Worldwide: Lessons for Health Policymaking in Countries Undergoing Demographic Transition

During the demographic transition period, the population’s average age increases, leading to a rise in healthcare and treatment costs. Given the significant role of treatment costs in the economy and the management of government and household expenditures, this research investigates the impact of aging on healthcare costs globally.  This research utilizes secondary data from 90 countries worldwide from 2010 to 2020, obtained from official international institutions, to investigate the effects of aging and other factors on treatment and healthcare costs. Panel data regression and classical hypothesis tests were employed to test the hypotheses. The results show that government spending, literacy rate, and health insurance coverage are important factors in reducing out-of-pocket health expenses. Conversely, economic development and the proportion of the elderly population in the total population increase the mentioned costs. The key findings of the research are the expenditure of health insurance funds on health infrastructure, prevention, and promotion of health literacy, as well as increasing the coverage of health and social insurance. Countries in the early stages of demographic transition can utilize strategies such as: developing health insurance capital, investing in insurance capital and government expenditures in health infrastructure, implementing preventative programs for elderly diseases, promoting health, and increasing insurance coverage as forward-looking policies to prevent the heavy burden of health costs on households and by the government.