Several new studies indicate that the health of baby boomers isn't as good as they'd like to think, which could prove a costly illusion for employers, especially as more older workers delay retirement for financial or personal reasons.

A majority (53.7%) of Americans age 50 to 64 declared themselves in "excellent" or "very good" health in 2005, down slightly from 54.3% in 2004, according to an AARP report called "The State of 50+ America."

However, they might be fooling themselves. According to the National Institute on Aging, Americans in their early to mid-50s today report more pain and more trouble doing everyday physical tasks,  such as walking, climbing steps, getting up from a chair and kneeling, than previous generations reported at the same age. In addition, Americans age 54 to 59 report having more pain, chronic health conditions, alcoholism and psychiatric problems than people who were the same age 12 years earlier.

Although Americans are living longer, 60% of boomers will have more than one chronic condition by 2030, new projections from the American Hospital Association suggest, including 25% of boomers who will have diabetes and nearly 50% who will have arthritis.

Further, more than 21 million boomers will be obese by 2030, AHA finds. AARP reveals 70% of Americans age 50 to 64 were overweight or obese in 2005, and 16% had possible signs of depression. Only 27.5% of Americans in that age group engaged in leisure time physical activity in 2005, down from 29.3% in 2004, the AARP report indicates.

No doubt, "boomers do have more conditions and more costly conditions than in the past," says Richard Johnson, a senior research associate in the Urban Institute's Income and Benefits Policy Center.

Even more worrisome, fewer boomers are insured, and fewer report being able to afford health coverage. At least 86.1% of Americans aged 50 to 64 had health insurance from any source for any length of time during 2005, down from 87.1% in 1999. Likewise, 93.4% of Americans aged 50 to 64 were able to afford medical care when needed in 2005, down from 94.3% in 1997, the AARP report states.

However, the news isn't all bad. Fewer boomers are smoking, partly because of smoking cessation programs offered by employers and smoking bans enforced in certain states and cities, Johnson notes.

Possible remedies

The U.S. health care system will face new challenges with boomers' medical needs because their growth will outpace individuals entering into the health profession, AHA predicts.

Employers should be aware of this trend and factor it into their calculations of the future cost of health benefits, Johnson advises, adding that companies are "starting to look at this pretty carefully."

Boomers have different needs and expectations than previous generations, and more medical services and technologies are available to them than ever before. "Employers are recognizing that the generations are a little bit different in the way that they receive information and want to act on something," says Pat Wiley, a principal with the consultancy Ernst & Young. However, employers also "want to create [health and wellness] programs that appeal across all generations."

Johnson recommends that employers provide subsidized gym memberships, yoga classes and other wellness programs that are likely to appeal to boomers, as well as other age groups. "These programs would probably be pretty effective in improving the health of the aging workforce," he remarks.

Wiley also encourages employers to educate boomers about financial as well as health issues, and reminds employers that boomers aren't all the same. Boomers are more racially and ethnically diverse than previous generations, and almost 20% of today's boomers are members of a minority group, AHA notes.

Despite generational and cultural differences, "the good news is more of us will be active and enjoying our later years," says AHA President Rich Umbdenstock. "But to meet the health challenges that come with that, we will need a greater focus on wellness and prevention, new approaches to care delivery and a new look at the American health care system." —L.S.

Associate Editor Lydell Bridgeford contributed to this report.