Congress is moving forward in discussions around health care reform as the President looks to get a bill passed before the end of the year. This is great news for the 40 million uninsured, and will hopefully be great news for many underinsured elders who need, but cannot afford long-term care (LTC) services. Currently, discussions focus on expanding and improving acute care and insuring universal coverage. Many advocates for elder issues have tried to raise awareness around the need to include long-term care in the discussion.
The Elder Economic Security Standard™ Index (Elder Index) measures the cost of home and community-based long-term care services depending upon an elder’s need. These costs can double or even triple what an elder needs to make ends meet. In New Jersey, long-term care costs range from $6,000 to over $46,000, according to the Elder Index. These high costs are minimal, however, compared to the institutional cost in New Jersey, and give ample evidence of why LTC reform is needed; so more elders can age in place.
Most insured elders rely on Medicare and Medigap which do not cover most long-term care expenses. The only options for elders in poor health are to qualify for Medicaid, pay for LTC insurance out-of-pocket (which becomes more expensive as you age) or rely upon the support of family and friends. The last option at times results in caregivers making sacrifices to their own financial, physical and emotional well-being to take care of a loved one.
Incremental change is possible with the Empowered at Home Act and the Community Living Assistance Services and Supports Act (CLASS Act). Of course, overall health care reform should consider the LTC struggles as well. Senator Kennedy’s recent remarks in a Boston Globe Op/Ed on health care reform give many elder advocates hope, “…we'll make it possible for the elderly and disabled to live at home and function independently. Our bill will help them afford to put ramps in their homes, pay someone to check in on them regularly, or any of an array of supports that will enable them to stay in their communities instead of in nursing homes”.
The health care reform debates are the opportune time to address the LTC issue and implement policies that will increase the quality of care while decreasing the medical out-of-pocket expense for elders and we, as advocates, will need to be diligent in voicing our concerns to ensure this happens.
Friday, May 29, 2009
Friday, May 22, 2009
Feature: Pension Rights Center
Thank you to all who participated in our May 1st, "Blog About It: Elder Economic Security" event. It was a great success! This week, we are highlighting one of our blog day co-sponsors, the Pension Rights Center (PRC). The PRC is an organization committed to promoting and protecting elder economic security.
More and more employers are breaking their pension promises by freezing their traditional pension plans or by suspending their 401(k) matching contributions. And most workers have very little in personal savings.
What remains clear, however, is that we need something more. Take one look at the statistics for older Americans today and you’ll see why. For 2009 the average annual Social Security benefit is $13,383, only slightly more than the federal minimum wage. And, in 2007, half of Americans age 65 and older who had income from financial assets received less than $1,585 a year in income from those assets. Significantly, older Americans with pensions fared much better than those without them. The median annual income of retirees with pensions was $31,227 while the median annual income of retirees living only on Social Security was $16,527.
And for women, the numbers are far worse. According to the Congressional Research Service, in 2007, the median annual income for women age 65 and older was $13,877 compared to $24,142 for men. The Elder Economic Sufficiency Index released by Wider Opportunities for Women shows how elders with low- and modest-incomes are challenged to cover their living costs today, as costs for basic needs are rising much faster than their incomes. That’s why the Pension Rights Center’s Women’s Pension Project is working to make retirement plans fairer to women.
At the same time, something must be done to ensure that the three-legged stool of retirement security is redesigned and rebuilt. That’s why the Center, along with three other organizations, launched Retirement USA, an initiative working toward a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for tomorrow’s older Americans.
This blog entry was written as part of a blog day sponsored by Wider Opportunities for Women.
Older Americans Month Posted by Joellen Leavelle
More and more employers are breaking their pension promises by freezing their traditional pension plans or by suspending their 401(k) matching contributions. And most workers have very little in personal savings.
What remains clear, however, is that we need something more. Take one look at the statistics for older Americans today and you’ll see why. For 2009 the average annual Social Security benefit is $13,383, only slightly more than the federal minimum wage. And, in 2007, half of Americans age 65 and older who had income from financial assets received less than $1,585 a year in income from those assets. Significantly, older Americans with pensions fared much better than those without them. The median annual income of retirees with pensions was $31,227 while the median annual income of retirees living only on Social Security was $16,527.
And for women, the numbers are far worse. According to the Congressional Research Service, in 2007, the median annual income for women age 65 and older was $13,877 compared to $24,142 for men. The Elder Economic Sufficiency Index released by Wider Opportunities for Women shows how elders with low- and modest-incomes are challenged to cover their living costs today, as costs for basic needs are rising much faster than their incomes. That’s why the Pension Rights Center’s Women’s Pension Project is working to make retirement plans fairer to women.
At the same time, something must be done to ensure that the three-legged stool of retirement security is redesigned and rebuilt. That’s why the Center, along with three other organizations, launched Retirement USA, an initiative working toward a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for tomorrow’s older Americans.
This blog entry was written as part of a blog day sponsored by Wider Opportunities for Women.
Friday, May 15, 2009
What's Going on with Social Security?
President Franklin Delano Rosevelt signing into the law the Social Security Act of 1935.
This week, the Social Security and Medicare Trustees issued their annual report to Congress, affirming that Social Security is sound and in no immediate danger. Rather, the program continues to run large surpluses in spite of the economic downturn. The Trustees project that Social Security will be able to pay full benefits until 2037, four years earlier than the last projection. The report further shows that rapidly rising health care costs threaten Medicare’s solvency as early as 2017, confirming that health care is the crisis, not entitlements. The report has sparked renewed calls for action to address these issues.
Dr. Alicia Munnell, director of the Center for Retirement Research, wrote a commentary piece this week, “Social Security Healthier than Your 401(k)”. The piece focuses on the importance of Social Security and its exceptional functionality in comparison to the private retirement system and is a great realistic argument about plausible minor changes to Social Security to increase its longevity.
For so many elders across the country, Social Security is a steady source of income they can count on. In Minnesota, nearly 20% of elders depend on Social Security as their sole source of income, as cited in the state’s Elder Economic Security Initiative™ policy brief: “Elders Living on the Edge: When Meeting Basic Needs Exceeds Available Income in Minnesota”. In New Jersey, more than 25% of elders receive Social Security as their only source of income, as cited in the New Jersey Policy Brief. Social Security alone is not enough for elders to make ends meet, but without it as income, some elders would have nothing. According to the national Elder Economic Security Standard™ Index, Social Security provides on average about 60% of the income need by a woman to achieve economic security when living mortgage free. With the three legged stool of retirement – Social Security, pension and private savings – dissolving, more and more seniors are relying on Social Security alone in retirement. At WOW, we hope the adequacy of Social Security in retirement to meet basic need can receive equal policy attention as solvency receives.
Social Security is still a bedrock government program that continues to pay out benefits to 35 million retirees and their spouses on time each month. Given the latest news of its solvency will no doubt continue to increase discussion about changing the program sooner rather than later to maintain its effectiveness. As Congress begins deliberating more seriously about the issue, we hope they will take into account the vital role Social Security plays in the lives of elders, and also realize that Social Security alone does not make our elders economically secure.
Monday, May 4, 2009
OWL Blogs About Elder Economic Security!
The Older Women's League, an event co-sponsor, blogs about the Elder Economic Security Initiative and its importance as we begin Older Americans Month. Check out the post here!
What does elder economic security mean for Wisconsin?
Our Wisconsin partner, the Wisconsin Women's Network, blogs about what elder economic security means in their state.
Here in Wisconsin, we believe that elder economic security means the ability to age in place with dignity – for everyone. We believe that all elders deserve to be able to age in the place they choose with the economic resources and support necessary to do so, while maintaining independence and community involvement for as long as possible. The Wisconsin Elder Economic Security Initiative (WiEESI), a program of the Wisconsin Women's Network , is working in a variety of areas to help achieve this goal. We are providing the Wisconsin Elder Economic Security Standard Index and the information it contains to advocates, organizations and policy makers to inform the creation of policy and programs through venues such as a legislative seminar in September 2009 and ongoing presentations around the state. We are partnering with the Women’s Institute for a Secure Retirement (WISER) to pilot seminars which combine the WiEESI data and WISER’s experience in teaching women about planning for retirement to help Wisconsin women of all ages prepare for a financially secure retirement. On the horizon, we are looking into partnering with other state groups on common goals to give elders an opportunity to raise their voices on the issues that affect their economic well-being. We hope you’ll join us!
Friday, May 1, 2009
Women's Perspectives on Elder Economic Security
As part of our "Blog About It: Elder Economic Security" event, we interviewed women on their views about elder economic security and asked them about what they will need for retirement, and how the economic downturn has changed their view about retirement security. Some women also shared their opinion on what can be done to make retirement savings easier.
Check out the video below!
Check out the video below!
What does elder economic security mean for Michigan?
Our Michigan partner, Elder Law of Michigan, blogs today about the economy's affect on its state's elders and what needs to be done to move them toward economic security.A View from Michigan
At one time Michigan retirees enjoyed bright and very secure futures in retirement. Pensions and retirement benefits from “Generous Motors” (aka General Motors) represented the “Cadillac” in retirement health care and was a gold standard in terms of pensions and stock options. Retirement benefits have been eroding slowly over the last 10-15 years and dramatically in the last 8 months. The crisis in the stock market, the banking industry, the mortgage lending fiasco and now the bankruptcy of Chrysler have hit everyone hard—and put deep fear in retirees and those soon to retire.
A silver lining in the current atmosphere of economic insecurity is that it is forcing people to think more about their retirement and whether they will have enough money to get by. As part of the Elder Economic Security Initiative, we have the opportunity to educate the public about how many people in retirement are not making ends meet now and do some forecasting for the future. The next step is giving people the tools to be pro-active.
We also have a chance to rethink housing and the delivery of long term care services for older adults and people with disabilities. The economic down turn exposes the limited supply of affordable and safe housing for families of modest means to the forefront of policy conversations. We also know that we have an inadequate number of home health care workers; their working conditions are grueling and their pay a travesty. Planning our communities with new mixed use affordable and accessible housing where nursing homes and other now defunct institutions previously stood would be a great way to bring direct care workers together with those who need their services. Integrating affordable housing for home health care workers or family caregivers who have lost their jobs or given up their careers to assist loved ones is a green solution that reduces the cost of transportation, keeps communities together and offers new opportunities for older adults to support their families and share their stories and wisdom.
Adding a blended public/private pay system to the purchase of home help and other long term care services could increase the available jobs in the industry and get care to those who want to remain in their own homes, but for whom a nursing home (or similar) placement is the only alternative.
As families, friends and citizens rise to the challenge of the new economic realities, let’s rededicate ourselves during Older Americans Month to look for creative solutions to keep people together, create jobs, conserve energy and enhance our lives.
A silver lining in the current atmosphere of economic insecurity is that it is forcing people to think more about their retirement and whether they will have enough money to get by. As part of the Elder Economic Security Initiative, we have the opportunity to educate the public about how many people in retirement are not making ends meet now and do some forecasting for the future. The next step is giving people the tools to be pro-active.
We also have a chance to rethink housing and the delivery of long term care services for older adults and people with disabilities. The economic down turn exposes the limited supply of affordable and safe housing for families of modest means to the forefront of policy conversations. We also know that we have an inadequate number of home health care workers; their working conditions are grueling and their pay a travesty. Planning our communities with new mixed use affordable and accessible housing where nursing homes and other now defunct institutions previously stood would be a great way to bring direct care workers together with those who need their services. Integrating affordable housing for home health care workers or family caregivers who have lost their jobs or given up their careers to assist loved ones is a green solution that reduces the cost of transportation, keeps communities together and offers new opportunities for older adults to support their families and share their stories and wisdom.
Adding a blended public/private pay system to the purchase of home help and other long term care services could increase the available jobs in the industry and get care to those who want to remain in their own homes, but for whom a nursing home (or similar) placement is the only alternative.
As families, friends and citizens rise to the challenge of the new economic realities, let’s rededicate ourselves during Older Americans Month to look for creative solutions to keep people together, create jobs, conserve energy and enhance our lives.
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