State Director Michele Kimball testified today before the House Committee on Health and Human Services about the Governor’s budget and the need for long-term care reform.  Here is her testimony:

Mr. Chair and Members, thank you for the opportunity to testify today about the importance of long-term care from an individual consumer’s perspective.  I am Michele Kimball, State Director of AARP, representing more than 700,000 Minnesotans over the age of 50.

Every family across our state touches the long-term care system in some way.  Thousands have loved ones residing in facilities – and even more care for elders at home.  Others are currently helping a sick parent, neighbor or relative search for a nursing home, assisted living facility or home care aid. 

And still others are looking ahead to their own future – and trying to plan.  And if they aren’t planning, they should be.

Even in a time of economic or fiscal crisis, Minnesota’s consumers, taxpayers and voters expect and deserve a long-term care system that keeps our loved ones safe and allows them to live with the most independence possible.Older Minnesotans have been among the hardest hit by the economic downturn.  We have a strong tradition in our state of caring for our elders, and Minnesotans demand that we do everything within our power to uphold that tradition.  Several portions of the Governor’s budget proposal conflict with these traditions.

 We oppose the three percent cut in funding for other long-term care and continuing care providers as such cuts could potentially lead to cuts in staff levels.

We also oppose the proposed cuts in eligibility for long-term care waiver programs, which help very vulnerable Minnesotans receive basic care in the community – and prolong the need for expensive nursing homes.  This results in cost savings to both the state and taxpayers in the long-run.

We probably all agree in this room that we need to significantly reform long-term care as we try to prepare for our changing demographics.  My hope it that the budget dilemma becomes an opportunity to raise awareness of the urgency of this need for reform– and forces us to begin to implement some reform.  We simply cannot afford to move backward at this critical time.

We are working with a broad coalition to redesign the long-term care system.  These and other ideas deserve urgent attention. 

• We must make it a high priority to better recognize our informal caregiving system.  Unpaid family caregivers provide the vast majority of care to Minnesotans.  We also have a broad system of informal support in volunteers that help support our loved ones – such as by delivering meals on wheels, providing respite care for family caregivers or working as ombudsmen in nursing homes. 

Given the current budget and economic challenges, this system will be asked to do even more. We need to protect this fragile system from cracking.  AARP supports House File 337, to provide a tax credit for low income caregivers.  We also support allowing employees to use earned sick time to care for loved ones.  We should also urge the employer community to recognize the needs of employees caring for their loved one.

• All Minnesotans need to plan now for their own long-term care needs.  Representative Thissen’s bill which calls for a state-sponsored long-term care savings plan should be considered.   We should also publicize Minnesota’s Long-term Care Partnership program and encourage this as a tool to plan.
• We should further advance our work to rebalance the long-term care system so that people first have the option for home and community based funding before institutional care.  Minnesota has done good work in this area – but we can do better.
• Emphasizing preventative care in Medicare and working with our federal partners to maximize federal dollars will help us reform long-term care. 
• We need to connect consumers with nonbiased information about their long-term care options before they face a crisis.  The Senior LinkAge line is a fabulous resource that should be better publicized and supported.

• At the same time , we also need to ensure that people have access and are aware of tools such as Minnesotahelp.info , Minnesota’s single point of entry system that can help people navigate through the long-term care maze.

• Technology can allow care workers to more efficiently coordinate services and can offer new care options that help keep people in their homes.

Mr. Chair, as you know, the long-term care system is in need of systematic reform.  We need to find a way to better deliver services, plan for the future and ensure quality.   Thank you for the opportunity to share these thoughts today.  We would like to schedule individual meetings with each of you to discuss these ideas further.  We look forward to working with you to minimize the impact of this budget crisis on vulnerable Minnesotans – and to try to find a way to make some long-term reform in the midst of this dilemma

AARP joined a bipartisan group of legislators and advocates today at the State Capitol to urge support for legislation to strengthen laws that protect elders from abuse.

 “Too often, elderly Minnesotans find themselves as victims of financial exploitation or other abuse,” said Michele Kimball, AARP State Director.  “We must do everything in our power to spot potential abuse and stop it in its tracks.”

 The legislation will reform Minnesota’s Vulnerable Adults Act by streamlining the Vulnerable Adult Act reporting system, assuring that first responders have the tools to serve elders and strengthening laws to better protect vulnerable adults from financial exploitation. The bill addresses financial exploitation in several ways:

• It strengthens the definition of "financial exploitation."
• It gives county attorneys administrative subpoena authority for banking and financial records of a vulnerable adult.
• It seeks to standardize the counties' approaches to hardship waivers when the vulnerable adult has been financially exploited.
• It creates a private right of action for vulnerable adult victims against the perpetrator.

 “We are pleased to be part of this coalition and urge the Legislature to take swift action on this legislation,” said Kimball.

  Many Americans woke today to find that some of their TV stations are no long available as they undergo the switch from analogue to digital signals. AARP continues to educate older Americans and their families about the steps they must take to prepare for the transition, and is now operating a national DTV call center individuals may call for personal assistance.

“AARP is committed to providing relevant and important information to our members and their families to make this transition as easy and affordable as possible,” said Michele Kimball, AARP State Director. “Through a contract from the Federal Communications Commission, we are able to provide trained operators, implement a national toll-free number and run a center that individuals can call for information and help as they prepare for the transition in their homes.”  

Many older Americans depend on television for critical news and safety information, and may face significant challenges when television signals become exclusively digital. In conjunction with an ongoing education campaign, AARP has established a toll-free phone number consumers can call.

• Individuals can call 1-877-698-8068 to speak with a trained operator who can answer their DTV questions.
• Hours of operation are Monday through Friday from 8:00 a.m. to 10:00 p.m. EST.
• Spanish-language operators are available as well.
• The national DTV call center will be in operation through March 31, 2009.

“We look forward to helping as many consumers as possible in the transition process,” said Kimball .

For more information about AARP and the DTV transition please visit: www.aarp.org/dtv .

The Renters' Credit provides a tax refund to nearly 274,000 low- and moderate-income Minnesota households whose property taxes make up a large share of their incomes. Seniors and persons with disabilities make up 28% of all Renters' Credit recipients.

The Governor's proposed budget, released on January 27, 2009, proposes to cut the Renters' Credit by 27%, or about $51 million a year.

AARP is advocating against this cut at the State Capitol.

Read more about the credit here.

http://www.mncn.org/bp/renterscredit.htm

(Feb. 12, 2009)   AARPState Director Michele Kimball testified today before the MinnesotaState Senate Health and Human Services Committee about impacts of the Governor’s proposed budget on older Minnesotans.  Here is her statement.

Madame Chair and Members of the Committee, thank you for the opportunity to testify today about the Governor’s budget proposal.  I am Michele Kimball, State Director of AARP, where I work on behalf of more than 700,000 Minnesotans over the age of 50 and their families.

It is important to recognize that as we move forward with discussions on how best to address Minnesota’s budget shortfall, we are talking about real people with real needs.  There are names and faces behind cuts to programs and services.   With this in mind, AARP supports a balanced approach to protecting vulnerable Minnesotans of all ages from severe budget cuts. 

By balanced, we mean two important things.  First, the health and human services portion of the budget should not take a disproportionate cut; and  second, options for increasing the state’s revenues should be on the table.

Older Minnesotans have been among the hardest hit by the economic crisis.  We need to ensure that we maintain important health and long-term care safety nets at this crucial time.  We must all work together – at the state, as well as at the federal level – to guarantee that our most vulnerable can be assured of basic needs.

AARP has several concerns about the Governor’s budget and its impact on Minnesotans of all ages, but most especially those who are older and more frail.  I will mention a few here, but please know that my staff and I will be following up with you and members of the committee in individual meetings to further explain our concerns and to offer potential alternatives.

First, we are opposed to the provisions in the Governor’s budget that eliminate health care coverage for more than 87,000 adults, which has an adverse affect on coverage levels for children as well. Health care is a basic need, and we must ensure that strugglingMinnesotans have access to health care, especially when the economy is in crisis.

This proposal also potentially jeopardizes Minnesota’s opportunity to take full advantage of federal funding that will be made available when Congress passes the Economic Stimulus package conference report.  AARP has been advocating for passage of this critical legislation in Washington and urging Congress to include important aid to the states.

We also oppose the proposed cuts in eligibility for long-term care waiver programs and changes to the personal care assistance programs, which will result in less service to real people in need.  These critical programs help very vulnerable Minnesotans receive basic care at home – and postpone the need for more expensive nursing homes, resulting in cost savings to both the state and the taxpayer in the long-run.

Furthermore, we are concerned about this proposal’s potential affect on staffing in nursing homes. Given Minnesota’s recent struggles with abuse allegations in nursing homes, combined with our ongoing difficulty in adequately paying nursing home staff, this is not the time to cut funding for quality care.  We must do everything in our power to make sure that we are adequately funding quality care and protecting our most vulnerable.  We simply cannot afford to allow cuts in staffing to occur. 

Additionally, AARP opposes the three percent cut in funding for other long-term care and continuing care providers.  These providers care for our most vulnerable in their homes and in the community.  Cuts in funding could potentially lead to cuts in critical staff levels, and have the potential to either diminish the quality of care provided or force older residents into expensive nursing home care prematurely.  Neither of these options represent Minnesota's long-standing tradition of caring for its most vulnerable.

Finally, AARP is concerned with the portions of the proposal that roll back the gains we made last year in enacting health care reform.  AARP is very supportive of the Legislature’s bipartisan efforts to cover more Minnesotans, fund important health improvement and prevention initiatives, and find ways to better deliver health care to consumers. 

The new reforms make common sense – and will save the state money in the long-term.  We urge you to reject these rollbacks.

Please know that AARP is committed to working in a bipartisan fashion to find ways to minimize the budget’simpact on vulnerable Minnesotans in need of health care coverage and long-term care services. 

Thank you for the opportunity to share these thoughts with you today.  I will be happy to answer any questions.

  As the American Recovery and Reinvestment Act of 2009 enters conference,   Democrats and Republicans from the House and Senate have the opportunity to work together to provide real relief to Americans who have been hit hardest by the economic crisis and jump start our ailing economy.

Nancy LeaMond, Executive Vice President at AARP, released the following statement today:

“The gravity of the current economic crisis demands swift and thoughtful enactment of legislation that spurs job growth and provides immediate assistance to the millions who are struggling. That is why we are looking forward to bipartisan action in the coming days that will promote economic recovery and provide assistance to people of all ages seeking relief in dire economic conditions.

“Our members and  activists have ,contacted Congress and the Administration with over 262,000 phone calls and emails telling them just how important items like an additional Social Security payment for those ineligible for the Make Work Pay credit are to them. We have also collected more than 14,000 personal stories from our members telling us how they have been impacted by this economic crisis. We’ve shared these stories with their Senators and Representatives and urged them to act to address the challenges they are facing.

“Additionally, special attention should be paid to simulative provisions that benefit older Americans and their families. In a letter sent to Conferees by Bill Novelli, CEO of AARP, we specify those provisions which we believe will benefit individuals the most.”

An excerpt of Mr. Novelli’s letter specifically outlines which provisions of both House and Senate versions of the bill AARP believes should be included in the final conference report:

In addition, we also would urge that conferees include the following provisions, which differ substantially in the House and Senate bills, in the final version of the American Recovery and Reinvestment Act of 2009:

§           Support for $600 million to address critical health care workforce shortages. Approximately half of this funding would be dedicated to tackling the growing nursing shortage by providing a much needed increase in funding for the Title VIII Nursing Workforce Development Programs administered by HRSA/HHS. Funding for nurse training will meaningfully contribute to the reduction of the unemployment rate.

• Support funding for health information technology that includes strong privacy protections to ensure that people are notified when their personal health information is breached, and to prevent unwanted marketing to people based on their personal health information. In addition, the bill should require collection and reporting of standardized data on race, ethnicity, primary language, and gender, which can help eliminate health disparities.

• Increase investment in transit capital funding to the $12 billion level in the House bill to create jobs and save energy; and distribute highway funding with no less than 40 percent to local areas as in the Senate bill.
• Funding for  the Weatherization Assistance Program, at the House level of $6.2 billion, to help low-income families reduce energy costs by increasing their home’s energy efficiency and funding for the LIHEAP program, at the House level of $1 billion, to help more low-income and elderly families pay rising utilities bills.

Finally, AARP strongly supports the inclusion of the following items which are part of both the House and Senate recovery packages:

·          A significant increase in Medicaid spending that will help to stimulate the economy and that states desperately need as the current economic downturn causes caseloads to rise while revenues plummet.

·          A substantial increase in funding for the Social Security Administration at a time of significant caseload increases.

·          An extension and increase in unemployment benefits.  Over the past twelve months the number of unemployed aged 55 and older has risen by 65 percent.

·          Affordable health insurance via Medicaid and subsidized and enhanced COBRA for those who have lost health coverage along with jobs.

·          Funding for comparative effectiveness research which is critical to improving health care quality.

Thanks to Changing Aging reader Ellen Schneider for forwarding this . . .The Purpose Prize® is accepting nominations, including self-nominations, at www.encore.org/prize until March 5th.

The Purpose Prize® provides ten awards of up to $100,000 to social entrepreneurs, 60 years and older, who are solving some of our most pressing social issues – from health care to the environment, poverty to education.

Winners are leading a national movement of people in encore careers utilizing their skill and experience for the greater good.

Nominate today: www.encore.org/prize.

AARP sent the following letter to President Barack Obama urging him to act swiftly on health care reform.

February 6, 2009

President Barack Obama

The White House

1600 Pennsylvania Avenue, NW

Washington , DC20500

Dear President Obama:

The health and financial security challenges facing the American people are significant, and growing

as our economic woes continue to grow. Because of our belief that bipartisan health care reform is

critical to a strong economy, personal financial security and long-term fiscal stability, we are writing

to urge you to make health reform legislation a top priority this year. We ask you to send a clear

signal on the importance of health care reform by including in your budget submission policies that

would moderate cost growth and reinvest savings toward providing the tools necessary to support a

modernized health care delivery system that provides access to quality, affordable coverage for all

Americans.

As leaders of organizations representing well over 50 million American consumers, workers, CEOs

of the nation's largest companies and small business owners, we have joined together to form

Divided We Fail, an effort to break the partisan gridlock to improve health care and long-term

financial security for all Americans. We are supported by nearly 100 other organizations

representing a diverse spectrum of interests which share our commitment. We represent important

and powerful constituencies that can help advance the pillars of quality, access and affordability in

health care reform.

Health care is inextricably tied to America’s economic well-being. For families and workers, job

losses and economic woes are compounded by soaring health care costs for the care they need.

Unsustainable growth in health care places an unaffordable burden on all businesses. Now is the

time to begin bipartisan discussions on getting all Americans access to affordable health care.

Health care reform requires everyone working together and taking responsibility to improve the

system. Our organizations came together two years ago and formed Divided We Fail for just this

reason. We stand ready to work with you and your Administration to engage the American people

on these issues and propel action.

Sincerely,

Bill Novelli                                 John Castellani

CEO, AARP                               resident, Business Roundtable

  Dan Danner                             Andy Stern

President and CEO, NFIB       President, SEIU

Today, AARP participated in a press conference with Attorney General Lori Swanson to offer support for state legislation to protect consumers of reverse mortgages.  Attached is a statement from Michele Kimball, AARP State Director.

AARP supports Attorney General Swanson’s legislation to protect consumers of reverse mortgages.  These consumers are 62 years or older and longtime homeowners.  They need protection from fraudulent tactics that could steal their home equity and destroy their financial well being.

For most older Minnesotans, their home constitutes the biggest part of their life savings.  In fact, two-thirds of Americans aged 65 and older own their homes free and clear. 

Older homeowners across the state are increasingly turning to reverse mortgages to pay for life’s necessities – such as needed home repairs, health care or long-term care. According to a recent AARP report, reverse mortgage borrowers are much more likely to use reverse mortgages to pay for "necessities" such as debt reduction and health-care costs than to pay for “extras”.

While AARP believes that reverse mortgages should be used as a last resort for most consumers, we know that they can be a useful safety net for many Minnesotans who have no other choice and want to remain living independently and maintain a good quality of life.

I would like to call your attention to several areas of the bill that we believe will have a positive protective impact on consumers:

• First, mandatory counseling is essential to making sure that consumers get nonbiased information about the pros and cons of entering into a reverse mortgage. For example, a recent AARP study showed that 63% of survey respondents who went through counseling and decided not to take out a loan cited the high upfront costs, which can be as much as 7% of a home's value.

• Second, AARP supports increasing the responsibility of lenders so that when a mortgage is sold, the originator and the buyer of the loan can both be held responsible for any unscrupulous actions by the loan originator.

• We also support the suitability clause – intended to ensure that reverse mortgages are sold only to people who need them.  Lenders should be held responsible for selling loans that they know are bad for the particular consumer.

•  We strongly support the prohibition of cross-selling.  Too often, the home equity of borrowers is depleted because they are offered inappropriate financial products, such as annuities or long-term care insurance.  Consumers should be wary of anyone who tries to sell them something to be paid for with a reverse mortgage.  If anyone is trying to sell you something and recommending you use a reverse mortgage to pay for it, that's generally a good sign that you don't need it and shouldn't be buying it.

• Finally, we support expanding the timeframe in which consumers can reconsider and rescind their loan.

Older Minnesotans have been among the hardest hit by the economic crisis.  Many have lost retirement savings and employment while struggling to pay for the increasing costs of living.  For many, home equity will remain the largest and most important part of their life savings.  We believe this bill will help protect those homeowners who may be considering a reverse mortgage and ensure that they get a fair product that best meets their needs. 

We invite consumers who are considering a reverse mortgage and want to know more about how they operate to visit our website at www.aarp.org/revmort .

We look forward to working with Attorney General Swanson and the Legislature to see this important legislation enacted

AARP to State Leaders: Protect Vulnerable Minnesotans from

Severe Budget Cuts

(St. Paul, MN)  As Governor Pawlenty released his budget recommendations today, AARP urged state leaders to find a balanced approach to protecting vulnerable Minnesotans of all ages from severe budget cuts. 

“Older Minnesotans have been among the hardest hit by the economic crisis, and we need to ensure that we maintain important health and long-term care safety nets at this crucial time,” said State Director Michele Kimball.  “This crisis requires that we all work together – at the state and federal level – to ensure that our most vulnerable can be assured of basic needs.”

Over the next few days, AARP will be studying the Governor’s budget proposal to determine the impact of the budget on consumers.  AARP is committed to working in a bipartisan fashion to find ways to minimize the budget’s impact on health care coverage and long-term care services.

Kimball expressed concern about the Governor’s proposal to eliminate health care coverage for adults.  “This is the wrong time to increase the number of uninsured,” said Kimball.  “Health care is a basic need, and we must ensure that struggling Minnesotans have access to health care, especially when the economy is in crisis.”

Kimball also expressed concern about adequately funding long-term care services.  “Given Minnesota’s current struggles with abuse allegations in nursing homes, we must do everything in our power to make sure that we are adequately funding quality care and protecting our most vulnerable.”

AARP is also working at the federal level to urge Congress to pass an economic stimulus bill that will help the state deal with the budget crisis.  AARP members across the state are being urged to contact their U.S. Representatives this week and urge action on the economic recovery bill.  The Governor’s budget proposal assumes that Minnesota will receive at least $900 million in federal aid when the legislation passes.   The bill includes important provisions for Minnesota, including:

• Much-needed funding for state health and long-term care programs ;
• Affordable health insurance options for those who have lost their coverage along with jobs.
• A plan to improve health care for the 21^st century, including better use of technology ; enhanced funding fo r research on treatment effectiveness ; and greater funding for nurse and primary care training ;
• More funding for unemployment benefits and job creation to put people back to work; and
• More funding for the Social Security Administration to meet its growing needs

“Minnesota needs action from Washington now,” said AARP State Director Michele Kimball.  “AARP is urging Congress to take immediate action on this recovery and reinvestment package so that we can protect vulnerable Minnesotans from more severe cuts.”

AARP is also urging Congress to reauthorize funding for the State Childrens Health Insurance Program (SCHIP program) which provides needed health care funding for children and families.