Abstract: A socioeconomic gradient affects healthcare expenditures and longevity in opposite directions as less affluent individuals have higher current healthcare expenditures but simultaneously enjoy shorter lives. The reverse is true for more affluent individuals. However, it is unclear whether a healthcare expenditure gradient exists in a lifetime perspective. This paper analyses lifetime healthcare expenditures across socioeconomic groups using complete health cost data for all individuals in the entire Danish population. Contrary to existing literature, we find that all socioeconomic groups spend an almost equal amount on healthcare throughout a lifetime, once we account for mortality differences. Moreover, we derive the variance of lifetime healthcare expenditures and find that differences in total lifetime healthcare expenditures between any socioeconomic groups are insignificant using a Welch test. We do however confirm that the negative gradient persists within certain cost components, e.g., inpatient hospital care. Our results suggest that improving the health of a socioeconomic group has limited effects on lifetime healthcare expenditures as immediate healthcare expenditure savings are counterbalanced by additional healthcare consumption throughout a longer life. Immediate healthcare expenditures savings will nevertheless lower current national healthcare expenditures as it shifts the financial burden into the future.
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