A Look Back at 50 Years of the Special Committee on Aging

On Wednesday, the United States Senate Special Committee on Aging held a forum entitled "Aging in America: Future Challenges, Promise and Potential.” The event featured many speakers, including aging experts and key Special Committee staff, and commemorated the Committee's 50th anniversary.

The Special Committee is responsible for bringing attention to key issues relating to older adults. Although it has no legislative authority, the Special Committee on Aging studies issues, conducts oversight and investigates fraud and waste.

Kathy Greenlee, the Assistant Secretary for the Administration on Aging, spoke about the milestone legislation and judicial action that affects the aging community since the inception of the Special Committee in 1961, including:

• Creation of Medicare and Medicaid (1965)
• Federal Nursing Home Reform Act (1987)
• Americans with Disabilities Act (1990)
• The Olmstead Decision (1999)
• Affordable Care Act (2010)

Assistant Secretary Greenlee also emphasized the importance of preventative care across the lifespan, and that it is possible to deliver better care for those who need it at lower costs by using a home and community-based approach.

There has been a significant difference in the lives of older adults over the last half century, and the next 50 years is sure to be transformative as well.

Kelly Stellrecht
Outreach and Field Coordinator
Elder Economic Security Initiative

Pass the American Jobs Act and Put Women Back to Work

How do we resolve the current economic impasse? We put Americans to work, men and women. That will require a Herculean effort on the part of our leaders to catalyze job creation. As millions of Americans continue to look for meaningful employment, the President has put forward The American Jobs Act, a blueprint for getting Americans back to work, and we look to Congress to act quickly on this legislation.

Women are facing increasing unemployment rates and older women are facing higher rates of long-term unemployment. Wider Opportunities for Women (WOW) finds the “Pathways Back to Work Initiative” particularly encouraging because it includes employment and job training opportunities that create needed entry points for women of all ages, especially for those who are low-income workers.

Job training programs have proven to be successful in fighting unemployment. In the past year, programs like those proposed have helped put more than 4 million Americans back to work. These investments can continue to assist unemployed Americans, particularly women, get back to work with good jobs that pay higher wages and provide economic security for their families. Targeting funds toward enhancing opportunities for women and other under-represented groups by training women in non-traditional fields like construction and encouraging entrepreneurship among the long-term unemployed will ensure that we build an economy that lifts everybody, not just a few.

Take Gloria Morrison, for example. After juggling part-time jobs since high school as a security officer, sales manager, pizza deliverer and martial arts instructor, her part-time work dried up, and she sank into a depression because she was unable to find work. WOW’s Building Futures job training program for un- and underemployed residents in Washington, DC helped Gloria build new skills in marketable, middle-income work. Now she’s part of an apprenticeship program that is not only a job, but the first step on a career ladder that will provide her both job and economic security.

The President’s plan gives hope that we can move forward with investments in our economy that will be both innovative and effective, and we call on Congress to move now to pass this plan.

Donna Addkison
President/CEO
Wider Opportunities for Women

Super Committee, Don’t Leave Behind Older Women and Their Families

Times are tough for hardworking Americans of all ages. That’s why it’s imperative that Congress look for a balanced approach (including revenues) to deficit reduction, while protecting low- and middle-income elders who rely on programs like Social Security, Medicaid, Meals on Wheels, the Senior Community Service Employment Program and more.

As hard-working people see the availability of pensions dwindle, many find themselves wholly reliant on Social Security in their retirement years. Social Security is the only source of income for 1 out of 5 elders, and women are more than 60% more likely to live in poverty in their senior years than men are. Due to pay equity issues, the occupational segregation of women in low-wage jobs, and cycling in and out of the workforce due to take care of children and family members, women often find themselves with a Social Security payment that falls short of economic security.

The Elder Economic Security Standard Index (Elder Index) provides a clear picture of the plight faced by women living on average Social Security income. The Elder Index measures the income that older adults require to maintain their independence in the community and meet their daily costs of living. The average annual Social Security income for all women provides a single elder homeowner without a mortgage just under 70% of the income required to achieve economic security. If she rents her home, her average annual Social Security income will provide only 55% of the income required to achieve economic security.

Without employer-based retirement savings income, such as a pension, and/or housing and health care subsidies, the average annual Social Security income alone, although a critical economic security foundation, leaves women struggling to choose among necessities such as heating oil, prescription drugs and food. To close the income gap many elders must draw on state and federal supports including Medicare, Supplemental Security Income (SSI), the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP) and the Medicare Part D (prescription drug) Low Income Subsidy (LIS). As Congress looks for ways to reduce the deficit, it is important that they protect the programs that low- and middle-income Americans rely on to make ends meet in their later years.

Maggie Flowers
Field Manager
Elder Economic Security Initiative

The Initiative Hits the Road to South Dakota!

Kelly Stellrecht and I recently returned from the Sioux Falls area where I met many dedicated advocates working to help elders achieve economic security across the state.

Experience Works, who is our lead partner in the state, hosted a meeting for their partners to discuss the Initiative and how it will increase their capacity to advocate for seniors. Representatives from Experience Works across the state were there along with staff members from Senators Johnson and Thune’s offices, Volunteers of America, USDA, AARP, Rosebud Indian Reservation and Adult Services and Aging.

Shirley Stuart, State Director of Experience Works welcomes the group.

Learning about the South Dakota Initiative.

The event provided a great opportunity to introduce the framework and tools behind the Initiative, including the Elder Economic Security Standard™ Index (Elder Index), and began preliminary discussions on policy priorities to promote elder economic security in South Dakota. Also at the meeting, the Gerontology Institute at the University of Massachusetts Boston presented draft Elder Index data to the group showing what it really costs to retire in three counties in the state. When the Elder Index is officially released this fall, data for all 66 counties will be available.

Their work is important as more than one in four seniors in South Dakota relies on Social Security as their only source of income, amounting to an average income of $10,941/year for women and $14,826/year for men. Additionally, 11% of elders are living below the federal poverty level of $10,890 a year for an individual. The Argus Leader recently highlighted the needs of seniors in South Dakota and the efforts underway through the Initiative.

The South Dakota Initiative is brimming with ideas of how to educate the public and push for public policies that help seniors achieve economic security. Ideas centered on creating a clearinghouse for available services and organizing transportation for seniors in rural communities. Over the next few months, they will develop a robust policy agenda to accompany the Elder Index for South Dakota.

Find out more about the South Dakota Initiative and get involved if you live in the state!

Elder Initiative Launches in Colorado

Today the Elder Economic Security Initiative™ officially launched in Colorado!

Our state partner, the Colorado Center on Law and Policy, hosted an event focusing on long-term care and family economic security, cosponsored by the African American Caregivers Association. Speakers discussed the Elder Index, which includes data on what it costs for elders to make ends meet in each county. This marks the 14th state to launch the Elder Economic Security Initiative.

Check out the media coverage of the release so far:

• Denver Post: Colorado seniors' expenses strain budgets, index shows
• Public News Service: Study: Coloradans Are Unprepared for Retirement

The Colorado reports are now available online:

• Colorado Elder Economic Security Standard™ Index
• Elders Living the Edge: When Basic Needs Exceed Income in Colorado

Medicaid Provides Much More Than Aid to Families

While commonly thought of as a program for low-income families with children, the majority of Medicaid dollars are actually spent on health care for adults age 65 and older and people of all ages with disabilities. In fact, 21% of Medicare beneficiaries, or 9 million people, are also eligible for Medicaid. 

According to Tricia Neuman, Vice President and Director of the Medicare Policy Project at the Kaiser Family Foundation, who spoke at a briefing on the subject last week, many Medicare beneficiaries are struggling to get by in retirement. As we know from the Elder Index, the annual costs for basic expenses are $20,326 for a single elder renting an apartment in the US. In comparison, one half of all Medicare beneficiaries live on less than $22,000, for African-American beneficiaries the average is $14,198 and Latino beneficiaries it is $13,527.

To make matters worse, half of all Medicare beneficiaries have less than $53,000 in combined savings. When taking into account that nursing home costs average $75,000 annually, you can imagine how quickly people can spend down to Medicaid reliance. 

With so much discussion around capping Medicare and Medicaid spending, it is important to educate yourself for the fight ahead. Join us to learn more about Medicaid by signing up for WOW’s webinar: Budget Battles: Threats to Medicaid on Thursday, June 30 at 3:00pm Eastern.

Maggie Flowers

Field Manager

Elder Economic Security Initiative

The CLASS Act and Older Americans

We are excited to have a guest post by Kate Josephson of Advance CLASS, Inc. as a follow up to our week-long blogging event.

The Boomer generation is creeping up in age and Medicare and Medicaid services are under fire. Everyone has heard what is happening on Capitol Hill these days – Congressman Ryan’s (R-WI) Budget Plan would turn Medicaid into block grants, causing long-term services to change in this country for anyone who depends on those supports to live in their community. Medicare coverage could also start to deteriorate. Just this past week, it was predicted by Trustees of the Social Security and Medicare trust that Medicare and Social Security are due to run out sooner than expected. What will our nation’s citizens do if the Treasury bonds used to fund these programs run out?

The Community Living Assistance Supports and Services Act (CLASS Act) was introduced in Congress by the late Senator Kennedy in 2005. It later became part of the Affordable Care Act passed by Congress in March 2010. The idea of the CLASS Act is to help working Americans plan ahead to pay towards the cost of the home care or community assistance they may need if they develop a functional impairment. Anyone who is at least 18 years old and working can pay into the program for just five years to receive a lifetime benefit. The all-cash benefit of at least $50 per day can be triggered once an individual is unable to perform two or more activities of daily living (ADLs) or the cognitive equivalent.

Studies have found that as Americans age they prefer to stay in their homes if at all possible. Studies have also found that it is cheaper for older adults to remain in their homes than it is for them to move into nursing homes. The CLASS Act would allow an elderly person to remain in their home by being able to pay for a few hours of personal care attendant; or the person could save the cash benefit to pay for household changes or even supplement their nursing home care. Either way, home-based personal care would allow the affected individual would be able to remain a connected member of their community for as long as possible.

Throughout the past year, the CLASS Act has come under the scrutiny of Congress. It was blasted by Representative Phil Gingrey and was termed as a “Ponzi Scheme” by Senator Kent Conrad. In March, Representatives Gingrey and Boustany introduced legislation repeal the CLASS Act – however, they offered no plan to replace it. Even though many government officials are worried about the sustainability of CLASS, the Secretary of the U.S. Department of Health and Human Services has vowed, consistent with the mandate of the law, that she would not introduce an unsustainable product to the American people. The Obama Administration has continued to heed the call for people with disabilities and older Americans to be able to receive care without becoming poor enough to be eligible for Medicaid.

In the Spring of 2011, the Administration set up the Office of CLASS under the umbrella of the Administration on Aging (AoA). Kathy Greenlee, the Assistant Secretary for Aging is leading the office. Now that the office is up and running, older Americans and citizens with disabilities can be sure that their needs will be addressed for future generations. As the CLASS Act moves forward, there will be countless benefits for those people who choose to enroll. Many Americans have a difficult time planning for the future; many don’t like to think about it, and many are unaware of how to properly plan. The CLASS Act will give individuals the opportunity and guidance to be able to plan for their futures without taxpayer assistance. The choice to live your life as you choose is a fundamental cornerstone of this nation – it is time we made that choice available to all our citizens.