Answer
a) If the elderly do consume the same market basket of goods as the general population, then the elderly do get an improvement in their standard of living each year. This happens due to the fact that most economists say the CPI overstates the true inflation for the previous year.
Work Step by Step
b) I would have to see how much the average elderly person spent on healthcare compared to the rest of their expenditures. This would create a different market basket for the elderly (compared to everyone else), and then we could compare the two baskets to see if the elderly are truly better off.