Population aging is a global phenomenon, which has already been experienced in the developed countries and is now being felt in the developing countries too. India is one among such countries which accommodates a large number of elderly. Given the projected duration of life in old age, the emerging concern relates to well-being in terms of freedom from disease and disability, which has implication not only for the individual but also for the household and society at large. The state of Kerala, which achieved below replacement level fertility much ahead of other Indian states, has the highest proportion of elderly. This proportion is going to increase from 10.6 % in 2001 to 18.3 % in 2026 (India, Registrar General 2006). This evident shift in the population structure indicates intense aging of the Kerala population, which, in turn, has considerable socio-economic implication, viz., meeting health needs and proper nutrition for the elderly, providing pensions and social security, etc. Different aspects of aging have been looked upon in case the of India, but the implication of aging on health expenditure has not been given due attention yet, in the case of either Kerala or India. On this account, this research proposes to attempt an exploration of the issue of population aging and its implications for health expenditure.