This paper extracts the Policy Implications from ENEPRI Research Report No. 35, prepared under Work Package IV of the AHEAD Project (Ageing, Health Status and Determinants of Health Expenditure) for the European Commission. The purpose of this work package was to build up a picture of the movements in health status of the whole population of each country by age. In WP III of the AHEAD project, transition probabilities were calculated for the migration between the different states of health, and for selected countries, migration into residential care and death. We use these probabilities together with demographic data from various sources to produce demographic accounts and then use these once again to produce transition probabilities.