BackgroundThe per capita health expenditure (HE) and share of gross domestic product (GDP) spending on elderly healthcare are expected to increase. In many developing countries like Tanzania, there is an increasing gap between health needs and the available resources for elderly healthcare, which leaves the elderly with poor health conditions, especially chronic diseases. These conditions lead to catastrophic HEs for the elderly. ObjectiveThis study aimed to analyse the association among health, wealth, and medical expenditure in rural residents aged 60 years and above in Tanzania. MethodsData were collected through a cross-sectional household survey to rural residents aged 60 years and above living in Nzega and Igunga districts. Standardised World Health Organization (WHO) Study on Global Ageing and Adult Health (SAGE) and European Quality of Life Five Dimension (EQ-5D) questionnaires were used. The quality of life (QoL) was estimated using EQ-5D weights. The wealth index was generated from principal component analysis (PCA). Two linear regression analyses (outpatient/inpatient) were performed to analyse the association among health, wealth, medical expenditure, and socio-demographic variables.ResultsThis study found a negative and statistically significant association between QoL and HE, whereby HE increases with the decrease of QoL. We could not find any significant relationship between HE and social gradients. In addition, age influences HE such that as age increases, the HE for both outpatient and inpatient care also increases.ConclusionThe health system in these districts allocate resources mainly according to needs, and social position is not important. We thus conclude that the system is fair. Health, not wealth, determines the use of medical expenditures.