This paper aims at analyzing healthcare expenditure and demand of families, by estimating income-elasticity and price-elasticity for ten groups of products using the so-called model Linear Almost Ideal Demand System (LAIDS). The 2002/03 consumer expenditure surveys (POF) of the Fundação Instituto Brasileiro de Geografia e Estatística – FIBGE (Brazilian census bureau) are used, providing extremely detailed information on family expenditure for the Brazilian states and major metropolitan areas. The variables used in estimating the model were directly taken from the microdata of such surveys. Such a procedure has allowed that logarithms of prices and monthly family earnings per capita could be estimated directly from individual observations and not from the aggregate data for the original income groups of POFs. Estimating the demand by using a two-stage model has pointed out to an incomeelasticity of healthcare higher than the unit, showing that healthcare is price-inelastic, a result valid for all observed healthcare subgroups.