Household Spending Guide
Healthcare Spending Across the Lifecycle
Healthcare costs rise dramatically with age, but when, and how much? According to the U.S. Bureau of Labor Statistics Consumer Expenditure Survey, households headed by someone 75 or older spent $7,918 on healthcare in 2024, far more than the $1,485 spent by under-25 households. This guide maps the full lifecycle trajectory; see our methodology for how the data is compiled.
Healthcare Spending by Age Group (2024)
Annual healthcare spending by age of household head
Spending climbs steeply through the lifecycle
| Age Group | Annual Healthcare |
|---|---|
| Under 25 | $1,485 |
| 25–34 | $3,825 |
| 35–44 | $5,949 |
| 45–54 | $6,748 |
| 55–64 | $6,711 |
| 65–74 | $7,715 |
| 75 and older | $7,918 |
Key Findings
- Healthcare spending more than quintuples from under-25 households ($1,485) to those 75 and older ($7,918) - about 5.3× as much. Most of the climb happens by mid-career and then continues past 65 with the shift from employer coverage to Medicare plus supplemental plans, higher prescription costs, and more frequent care.
- As a share of the budget, healthcare rises from about 3% for under-25 households to roughly 14% for those 75+. Even as total spending declines for older households, healthcare's share grows substantially.
- The healthcare category includes health insurance, medical services, drugs, and medical supplies. Health insurance premiums are the largest component for most age groups.
Why Healthcare Costs Rise With Age
Several factors explain the lifecycle pattern:
- Insurance transitions: Employer-sponsored coverage shifts to Medicare at 65, with additional out-of-pocket costs
- Chronic conditions: More frequent medical visits and prescription drug use as chronic conditions develop
- Dental and vision: Medicare covers neither, so older adults pay out-of-pocket or buy supplemental plans
- Long-term care: Some spending shifts toward home health aides and assisted living
Explore more: Full Healthcare Category Data · All Age Group Data
Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey 2024. Compiled by the PlainHousehold editorial team.
How the gap looks across the lifecycle
The pattern is consistent in the BLS Consumer Expenditure Survey: households headed by someone under 25 spent about $1,485 a year on healthcare in 2024, while those headed by someone 75 or older spent $7,918 - roughly 5.3× more. Spending rises steadily through the working years and steps up after 65 as Medicare-supplement premiums and ongoing care accumulate.
Healthcare also varies by income, not just age: across income quintiles in 2024 the figure ranged from about $3,445 for the lowest fifth to $9,771 for the highest. Use the healthcare category page to see the full breakdown by income, region, and household size, and the age pages for each bracket's complete budget.
Limitations and caveats
These are BLS Consumer Expenditure Survey averages keyed to the age of the household reference person, they describe typical households in each bracket, not any one family, and individual spending varies widely with health, insurance, and income.
The healthcare category here captures household-paid costs, insurance premiums the household pays, medical services, drugs, and supplies, but not employer-paid insurance premiums, which fund most working-age coverage and are not part of this out-of-pocket figure. As with all survey data, prior years are periodically revised by the BLS, so small year-to-year differences should be read with care.
Where to go next
See how your own household compares to these BLS Consumer Expenditure Survey figures.
- Find your spending percentile against the national income quintiles. Budget calculator
- Explore the full breakdown by category, income, age, and region. All categories
- Save the categories you want to track to your private watchlist. Save categories
All figures are national-average BLS Consumer Expenditure Survey data; individual households vary.
