I use data from the 2006 Health and Retirement Study to analyze the determinants of material hardship among individuals ages 65 and older. Ten percent of the elderly report hardshipdefined here as cutting back on food or medications because of cost -in 2006. Although hardship is more likely for poorer individuals and, to some extent, for recipients of public transfer programs (Medicaid, Food Stamps, and/or Supplemental Security Income), the majority of those experiencing hardship are not poor

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... d do not participate in these programs. In multivariate models, I find that self-reported health and activity limitations are significant predictors of hardship.