The purpose of this memo is to explore what we know about American’s spending on health care and especially how much of it comes directly out of the family’s current budgets. In the end, I hope to have laid out what are plausible assumptions we can make about the three parts of the imputation procedure: the aggregate of household spending on health care, proportion of this aggregate which is spent by families with a reference person 65 years or older, and the method to distribute the aggregates to  individual family records.