cover image The Coming Health Crisis: Who Will Pay for Care for the Aged in the 21st Century?

The Coming Health Crisis: Who Will Pay for Care for the Aged in the 21st Century?

John R. Wolfe. University of Chicago Press, $38 (172pp) ISBN 978-0-226-90515-0

With Social Security funds nearing exhaustion and the proportion of retirees to workers (whose taxes finance their elders' medical and long-term care) growing, Michigan State University economics professor Wolfe warns that baby boomers due to retire in the early 2000s will face a major crisis. In his comprehensive and alarming summation of the problem, Wolfe reviews the advantages and drawbacks of present government and private insurance options aimed at reducing intergenerational transfers. Opposed to increased taxes except for alcohol and tobacco, Wolfe advocates government ``pre-funding'' or partial subsidization of a combination of mandated, new and existing programs such as health maintenance organizations and home- or life-care facilities, along with IRAs and home equity conversions. According to his proposed plan, employers who contribute to prefunded programs would be accorded tax advantages. Illustrations not seen by PW. (Apr.)