This Congressional report notes that the aging of the United States population has presented significant challenges to the development of health and social policy. It advocates a better understanding of the heterogeneity of the elderly population as a first step in reframing issues concerning health, aging, and societal responsibilities and in developing effective public policies. An overview of the aging population is presented and a health profile of the elderly in the United States is included. The healthy elderly, chronically ill elderly, and acutely ill elderly are considered. Ways to meet the needs of the chronically ill elderly are considered. The mortality profile of the elderly is presented. A section on the health needs of the elderly in the United States provides an overview of hospital utilization and looks at the long-term care service utilization of nursing homes, home care, health care professional services, and preventive health services. Health care expenditures of the elderly are described, including expenditures for hospitals, long-term care, and physician services. Government and private financing of health care expenditures is discussed. Major issues associated with the health care system for the elderly are identified and discussed, including issues of basic research, preventive health services, hospital care, health care professional services, and long-term care services. Charts and data tables are included. (NB)