The research data comes from Chinese Longitudinal Healthy Longevity Survey (CLHLS). This paper established the ill-health index based on self-assessment health and adjusted Barthel index of ADL. Using the ill-health index, this paper investigates influence factors of the health of the elderly from the perspectives of demographic characters, economic status, life styles and social security as well as social support. Then concentration index is applied to measure income-related health inequality of elderly. The result demonstrates that there is a remarkable pro-rich health inequality and the concentration index is about -5.32%. The logarithm of annual income, loneliness and exercise level are the top three factors which accounts for 39.21%, 12.68% and 9.74% respectively.