This is from a NBER Working Paper by David Cutler, Kaushik Ghosh, and Mary Beth Landrum:
Health status in the year or two just prior to death has been relatively constant over time; in contrast, health measured three or more years before death has improved measurably…We show that disability-free life expectancy is increasing over time, while disabled life expectancy is falling. For a typical person aged 65, life expectancy increased by 0.7 years between 1992 and 2005. Disability-free life expectancy increased by 1.6 years; disabled life expectancy fell by 0.9 years. The reduction in disabled life expectancy and increase in disability-free life expectancy is true for both genders and for non-whites as well as whites. Hence, morbidity is being compressed into the period just before death.
HT: Timothy Taylor.