The aim of this chapter is to examine the association of living arrangement and economic dependency with health spending among elderly in India. The living arrangement has been analyzed by living alone or living with spouse only and living with spouse and other family members and living without spouse and with other family members (non-empty nesters). Economic dependency has been categorized as economically dependent and independent, and the health expenditure on hospitalization is used. Do elderly people living alone or with spouse only spending more on their healthcare if they are economically independent? To find out answer to this question in this chapter, we have used the national level data on “Social Consumption on Health,” 75th round, 2018, collected by National Sample Survey Organization, Government of India. It has covered a total of 31,194 elderly households (2676 elderly only households and 28,518 co-residing households). Bivariate and multivariate analysis and logit regression model are used in this study. Healthcare expenditure among young old who were economically dependent was ₹34,383 than ₹63,210 among oldest old. Financially independent elderly are spending more on health care than depended elderly. Financially independent elderly are having high OOP (₹32,442) than economically dependent elderly Indian (₹24,205). It has been found that oldest aged (75+) people are economically more likely to depend on others (OR 2.02, 95% CI, 1.88, 2.18). Female are extremely high dependent on others for financial assistantship (OR 9.43, 95% CI, 8.86, 10.04). About 80% of elderly people in India living with children and other family members and 21% oldest old and 5% young old were reported physically immobile. Oldest old, female, and widow/separated were less likely to live alone and above 70% dependent fully on the others for economic support. Physically immobile and female elderly were less likely to live alone. Those elderly who are economically independent have ability to pay more and possibly avail good quality health services compared to those who are economically dependent. This finding concludes that economically dependent elderly need more social support from government which may assure the family member to take care of elderly health.