Population aging implies the following: 1) an increase in medical
cost per capita because old people need more health care and 2)
a decline in tax base because the working-age population shrinks.
Both of these factors increase the burden of financing the UHI
system. In addition, in the benchmark economy, the UHI of medical
expenditures is lower because it represents the condition in 2005.
The average out-of-pocket medical expenditure ratio in 2005 was
27%, but it gradually decreased to 14% in 2011. We assume that the