WASHINGTON—A new report by AARP’s Public Policy Institute finds mixed results and promising signs among state government efforts to balance long-term care (LTC) options under Medicaid.  Unfortunately, according to the report, only four states spent more than 50 percent of their Medicaid LTC dollars for older people providing home and community based services (HCBS).  In Pennsylvania, 90% of Medicaid LTC dollars for older people and adults with physical disabilities who have limited financial resources are steered to nursing homes.   

The report, A Balancing Act: State Long-Term Care Reform, is the first to examine Medicaid spending on long-term care for older people and adults with physical disabilities, separate from other LTC users such as people with mental retardation/developmental disabilities (MR/DD).   

Nationally, 75 percent of Medicaid LTC spending for older people and adults with physical disabilities pays for institutional care in nursing homes.  In contrast, states have done a much better job balancing Medicaid LTC for people with MR/DD, spending just 39 percent on institutional care. The majority of funds now supports people in home and community-based settings.

“We recognize the success state Medicaid programs are having providing home and community based services to people with mental retardation/developmental disabilities,” said AARP Pennsylvania State Director Dick Chevrefils. “It proves that balancing long-term care is doable and should be used as a model to help states provide home and community based services for older adults.” 

As part of its Commonwealth Long-Term Living Project, Pennsylvania set a goal of 50 percent home-based care to 50 percent institutional care for all long-term care populations by FY 2011-12.  Unfortunately, the recently passed 2008-09 state budget included no new spending to reduce existing HCBS waiting lists for Pennsylvania’s lottery-funded OPTIONS program.  

The report examines Medicaid LTC funding because it is the primary payer for LTC in the country.  “This underscores the need for better government and private sector financing options for long-term care.  Americans have few options to plan and pay for their long-term care.  Balancing Medicaid LTC options will require a commitment from our state officials and cooperation from federal authorities.  HCBS can be both cost-effective and responsive to the preferences of older people and adults with disabilities,” said Chevrefils.  

The new report includes state rankings and can be found at: http://www.aarp.org/research/longtermcare/programfunding/2008_10_ltc.html.

Sharon, PA – Pennsylvania Congressmen Jason Altmire (D-4) and Phil English (R-3) told an audience of local business leaders at an AARP town hall meeting that a proposal to have companies establish automatic payroll deductions to individual retirement accounts (IRA) for employees will increase retirement security for millions of American workers.   

Representative English is a prime sponsor and Representative Altmire is a co-sponsor of the recently introduced Automatic IRA Act (H.R. 2167) that would require employers without retirement plans to establish automatic payroll deductions to IRAs for their employees.  

“Saving for retirement today is not easy,” said AARP Pennsylvania Volunteer State President Estella Hyde. “American workers know they need to save, and we should do all we can to help them. They need access to workplace savings plans to build an adequate nest-egg and lifetime financial security.” 

Recent research shows only about half of 150 million paid workers in the United States have some form of pension coverage provided by their employer. Linking automatic enrollment with IRA options will encourage individual savings, she said.

“This is common-sense legislation that will increase retirement security for millions of American workers that would not otherwise have access to a payroll deduction retirement savings plan,” said Representative English.

Under the proposal, companies with more than 10 employees that do not offer qualified retirement or pension plans would be required to allow all eligible workers the option to put a portion of their wages into an automatic IRA account through payroll deductions. To offset administrative costs associated with establishing the payroll deduction, small businesses with less than 100 employees would receive a tax credit of up to $250 for the first two years of the program.

 “The truth is many workers do not sufficiently prepare for a secure retirement,” said Representative Altmire. “Approval of this legislation will help ensure economic security for working families here in Pennsylvania and across the country.”

AARP Pennsylvania invites you to a dialogue about important health and long-term care issues affecting Pennsylvanians. 

This dialogue will be held twice on August 28 -- at 10:30am and repeating again at 6pm, so choose the time that is most convenient for you!  Space is limited, so be sure to call and pre-register to confirm your seat.  This event is free and open to the public.  AARP membership is not required for this educational event.

Tuesday, August 26, 2008

Morning Session:  10:30 a.m. - 12:00 noon

Boxed lunch at conclusion

Evening Session:  6:00 p.m. - 7:30 p.m.

Beverages and appetizers served

Swatara Church of God

4860 Lindle Road (Route 441)

Harrisburg, PA  17111

Call toll-free to pre-register, seating is limited:  1-877-926-8300.

All pre-registered attendees will receive free admission, parking and refreshments.

McCain to Speak at AARP’s Annual Life@50+ National Event & Expo in September

Washington – Senator John McCain committed to addressing AARP’s Life@50+ National Event & Expo.  Executive Vice President Nancy LeaMond released the following statement:

“We are thrilled that Senator McCain has decided to address AARP’s members at our annual event this September.  This will be an excellent opportunity for AARP members to hear directly from Senator McCain about how he will address the health care and financial security challenges facing the nation. 

“People 50-plus cast half of all ballots in 2006 and we expect similar, record turnout this election.  Most notably, our members tell us that one of the reasons they vote so consistently is because they worry about their kids’ and grandkids’ health care and financial security.  Senator McCain, like Senator Obama, has made health care and financial security fundamental aspects of his policy platform and AARP and our nearly 40 million members look forward to hearing more details in September at Life@50+.”

AARP has also invited Senator Barack Obama and hopes to receive confirmation of his attendance shortly.

  |START THE CONVERSATION|

How do we get from partisan gridlock to bipartisan action? It starts when our leaders sit down and discuss the issues.

That’s why we’re proud to announce that on June 17 at 6:30 p.m., Tommy Thompson, former U.S. Secretary of Health and Human Services and the 42nd Governor of Wisconsin, and Tom Daschle, former Senate Majority Leader from South Dakota, will be discussing health care at the 6th Annual Templeton Lecture presented by the National Constitution Center in Philadelphia. The event will address the question – health care choice vs. mandate? – moving past rhetoric to real solutions to our health care crisis.

The best part? Thompson and Daschle will answer questions submitted by you!

Now is your chance to ask the questions of our nation’s leaders. Click here to submit your question >>

Pittsburgh Seniors Speak their Minds on

Healthcare Reform at AARP Town Meeting   

Study shows older Pennsylvanians believe all residents

should have access to health care coverage

WEXFORD, PA -- More than 100 Pittsburgh area seniors, state officials and local health care advocates today shared opinions on how to improve the state’s healthcare delivery system at a town meeting hosted by AARP Pennsylvania.

AARP Pennsylvania State President Stella Hyde said older Pennsylvanians overwhelmingly favor extending health care coverage to the uninsured. More than eight in ten Pennsylvanians over age 50 believe all state residents should have access to affordable health care coverage, according to an AARP Pennsylvania study Ready for Change: Opinions of Pennsylvanians Age 50+ on Health Care Reform. In fact, 13% of the survey’s 820 respondents reported they currently have no health care coverage at all.

“Two-thirds of the older Pennsylvanians in our survey described the state’s health care system as being either in a state of crisis or having major problems,” said Hyde. “Older Pennsylvanians want leaders to work together to find the best possible solution for our state that will extend coverage to uninsured residents and help control skyrocketing health care costs.”

Pennsylvania Secretary of Aging Nora Dowd Eisenhower told the group the AARP study confirms what Governor Edward G. Rendell has been advocating over the past year and a half – that health coverage should be available to all Pennsylvania citizens.

“The state senate is currently considering the PA Access to Basic Care program, which is modeled after the Governor’s Cover All Pennsylvanians proposal,” she said. “This bill targets small business and uninsured individuals who need help the most, and we urge its quick passage.”   

Hyde said Pennsylvanians over age 50 increasingly are facing troubles paying home health care bills. According to the study, nine in ten older Pennsylvanians are concerned about having to pay more for their health care over the next five years, and eight in ten are concerned about having fewer health care services being covered.

The Wexford town meeting was the first of three AARP sessions planned throughout the state to discuss potential solutions to the state’s healthcare problems. Similar meetings will be held in Langhorne, Bucks County and Gwynedd Valley, Montgomery County on Wednesday.

“We look forward to finding a bipartisan solution that provides affordable, quality health care coverage for Pennsylvanians that also improves quality, cuts waste and focuses resources where they will do the most good,” Hyde said.