States consider cutting drug help for seniors

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Posted on 27th May 2009 by gjohnson in Uncategorized

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Date: 5/27/2009

RAY HENRY
Associated Press Writer

PAWTUCKET, R.I. (AP) — Joanne Devlin needs about 20 prescription drugs to regulate her blood pressure, keep her arthritic joints limber and pain-free and control her asthma.

She counts on financial help from Rhode Island when her Medicare Part D insurance plan maxes out and no longer pays her drug bills, which can reach $3,000 every three months. But that state help may no longer be an option after Jan. 1.

The financial crisis has grown so severe that lawmakers in Rhode Island and five other states have debated whether to cut or reduce the state funding that helps seniors and disabled people like Devlin buy their drugs.

Devlin, 62, who lives off about $10,000 a year, worries she may need to stop taking her arthritis medication to make ends meet. She stocks shelves and helps distribute food as a volunteer at a Salvation Army food shelter.

“I wouldn’t be able to move a lot,” she said. “I probably wouldn’t even be able to come here. I’d probably have to stay home and some days be bedridden, probably.”

Devlin’s predicament is shared by many of the nearly 27 million people enrolled nationally in Medicare Part D, the federal insurance plan that covers prescription drugs for seniors until the total bill reaches $2,700.

Seniors then hit what’s commonly called the “doughnut hole,” and must personally pay the drug bill until their out-of-pocket costs reach $4,350, at which point Medicare coverage resumes. When seniors fall into this gap, 16 states offer financial assistance, said Thomas McCormack, a consultant for the Community Access National Network and editor of the Medicaid Watch newsletter.

Other states offer help to help defray some of the premium costs associated with Medicare.

Eliminating the program in Rhode Island would save about $700,000 and affect around 8,000 people, while a proposal to scale back benefits in South Carolina would have trimmed roughly $7 million. Officials in South Carolina have estimated about 22,000 people are eligible for the program.

Those savings aren’t huge: they amount to less than 1 percent of the total budget in both states.

Vermont’s governor proposed eliminating the funding this year, but lawmakers instead instituted co-payments that cost recipients $1 or $2. New York and Connecticut rejected plans to curtail assistance, while Massachusetts has scaled back co-payment assistance for its seniors.

Advocates for the elderly fear the cuts will force cash-strapped seniors to stop taking their medications, leading to serious health problems.

“What we repeatedly see happen is that people stop taking their medications, they get sick, they end up in emergency rooms and the they get hospitalized for more serious health problems,” said David Certner, the legislative policy director for AARP.

“In the long-term, this is going to cost more money because it’s going to lead to greater health problems,” Certner said.

Bill Flynn, executive director of the Senior Agenda Coalition of Rhode Island, believes the Rhode Island proposal is the result of across-the-board budget cuts run amok.

“The approach in hard times should not be necessarily, ‘Well, everything’s on the table so low-income seniors need to suffer along with everyone else,’” he said. “The human cost of something like this could be pretty profound.”

In January — as South Carolina grappled with worsening unemployment and $1.1 billion in cuts to its $7 billion budget — the state slashed its doughnut-hole help for seniors from 95 percent to 10 percent.

Gov. Mark Sanford vetoed nearly all of a $5.7 billion budget, including all Medicaid and prescription drug spending, in a fight over using $700 million in federal stimulus money. By overriding his veto on May 20, lawmakers raised South Carolina’s doughnut hole coverage to 40 percent.

Sanford, who says it is unconstitutional for lawmakers to require him to use the stimulus cash, has responded by filing a federal lawsuit.

He said the vote to force him to seek the cash was unconstitutional and that he would fight it in court.

In Rhode Island, which is also wrestling with high unemployment and severe budget shortfalls, Gov. Don Carcieri has proposed cutting his state’s prescription drug program for seniors.

“It was a very difficult decision, and it’s strictly a budget decision,” said Corinne Russo, director of the state Department of Elderly Affairs, which runs that program.

Carcieri’s plan would eliminate next Jan. 1 the program that pays 60 percent of drug costs for its poorest enrollees and covers all their costs beyond $1,500. The assistance, which costs $1.5 million and serves more than 8,000 people, mostly targets the poor, Russo said.

About three-quarters of the state’s funding helps the poorest people enrolled in the program, the group Russo most worries might skimp on medication to make ends meets.

“Those are the people who are most at risk either of not purchasing medication or not being compliant with their medication regimen,” she said. “If a doctor says take one a day, they may take one every other day,” she said.

Compromises may keep the assistance operating. Carcieri’s administration is investigating whether it could use federal Medicaid funding to keep the program running, or perhaps restrict it to the neediest only.

Democrats hold a veto-proof majority in the state Legislature, allowing them to rewrite the Republican governor’s spending plans. But Rep. Steven Costantino, the Democratic chairman of the House Finance Committee, said he could not commit to saving it.

Lawmakers have asked Carcieri’s administration to present them with cost-saving alternatives to totally eliminating the program.

“We’re at the point where we need to ask everybody to sacrifice on this budget,” Costantino said.

And that frightens Anne Fortin, 72, who counts on the state’s help to help her pay for drugs that control her asthma and emphysema. Without it, her monthly drug bill would easily double to $400 or more.

“I could never pay that,” Fortin said. “I’ve been thinking about it. I said, ‘My God, what am I going to do?’”

___

Associated Press Writers Jim Davenport in Columbia, S.C., and John Curran in Montpelier, Vt., contributed to this report.

Copyright 2009 The Associated Press.
Attorney Gordon Johnson
Past Chair Traumatic Brain Injury Litigation Group, American Association of Justice
g@gordonjohnson.com :: 800-992-9447 :: Attorney Gordon S. Johnson, Jr.

For Depression survivors, meltdown means reminder

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Posted on 29th October 2008 by gjohnson in Uncategorized

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Date: 10/29/2008

By MEGAN K. SCOTT
Associated Press Writer

NEW YORK (AP) _ The words have been repeated over and over: This is the worst financial crisis since the Great Depression.

For those who lived through that turbulent time, the statement sparks more than a history lesson. They experienced the bank closures, the bread lines and the sudden disappearance of available work.

What was life like for them? And what are their fears about what is to come? The Associated Press interviewed several people who lived through the Depression to find out how bad things can get — and appreciate our relative affluence today.

Here are their stories, edited from their own words:

EATING IN SOUP KITCHENS

NAME: Esther Pulliam-Torres, 79, New York

HER STORY: I was born in Des Moines, Iowa. When I first came to New York people were so surprised that black people lived in Iowa. My mother was a domestic. I never knew my father.

When I was younger, I remember going to the soup kitchen and I had a red bucket and I would go and they would fill my bucket with soup and I would take it home. I remember we ate a lot of cornmeal, cornmeal pancakes, cornmeal bread. I remember bread was cheap.

I have often thought back to the time when I was in the line with that red bucket because I really loved that red bucket.

As a senior, I’m on the opposite end now. On the one end, I was a child. On the other end, I’m an adult. At that time, I didn’t know anything. Now I do.

I’m worried because in terms of my Social Security, what’s going to happen if they decide to change the way we get it? That’s something I really depend on. I earned it. I worked hard for it.

BEGGING AND BANK FAILURES

NAME: Fran Marshall, 90, Upper Arlington, Ohio

HER STORY: The Depression was really, really bad in 1933. Of course it started in 1929. Then it got worse and worse. My father was a lawyer for two banks in New York. During the Depression, the two banks started to fail. He was so upset over it, he went into a mental depression and he never got out of it. It was a sad thing. He died in a mental institution.

People were trying to get their money out. The banks finally closed and that was the end of it. There was no more money. The government didn’t bail out people back then.

I remember the long lines of people standing in line for bread or soup. They were hungry. There were a lot more people begging back then. We haven’t gotten to that yet. God help us if we do.

We would feed people who came to the door asking for food. My mother would sit them down on the back porch and always fed them. She would give them eggs and toast. She never turned anyone away. My mother was good with money and because my father was a lawyer at one time, his law partner gave her $10 a week, when my father was ill.

In 1937 or 38, we had to move out of our brick house and across the street. We lived in an apartment upstairs and had to look down to the home we had once owned. That was tough.

I don’t worry about bread lines and bank closures coming back. I really don’t think it can get that bad. Look at the way the government has stepped in and the government didn’t step in like that way back during the Depression.

I think it’s safer today. But it’s scary. The whole thing.

TENT CITIES AND BREAD LINES

NAME: Philip Flash, 90, of Mercer Island, Wash.

HIS STORY: I grew up in Seattle. My dad was a tailor — he had a little shop. My mother helped dad in the store.

It was very, very hard, although I must admit that my sister and I never missed a meal. We lived in an apartment. I slept in the dining room. My sister in the living room and my parents in the bedroom.

One of the significant things that I can recall during the Depression was tent city down on the waterfront. People lived in shacks. There were hundreds of them out there.

Things were relatively inexpensive, but people just didn’t have any money. Many jobs just kind of disintegrated. If people had a source of income, they were very, very fortunate. They had bread lines, where you could, if you were down and out, get a meal.

One day my father said that there were some jobs in the sawmills. He left the store and never went back. My mother operated it for a couple of years. Things got worse and she had to give it up. I guess it just wasn’t paying for itself.

I’m real concerned about what’s going on today. We’ll come out of this, but it might take some time. I might not even see the day when it gets back to normal because I don’t know long it will take.

FARMING AND HARDSHIP

NAME: Louise McGee, 90, of Tiffin, Ohio

HER STORY: We lived on a farm and of course we didn’t have it too awful because dad raised a lot of our food. You only had one potato and a few vegetables. There were five of us girls. We worked out in the field the same as the boys. He farmed 80 acres.

One year we had to kill all the little pigs and burn the corn because there was a disease.

My parents didn’t have any money. Period. Not back in that time. The grain they could sell, you didn’t hardly get anything for it. Dad took our weeds and made flour. He took corn and had it ground and we had cornmeal.

I worked for other people who needed my help when I got older. The women had babies. I would go and work for them. You were lucky if you got three or four dollars a week. I gave that to my family.

In 1938, I got married to a farmer. It was kind of rough the first couple of years. In 1940, he joined the Army.

If something doesn’t straighten out, we’ll have another hard Depression like we had back then.

There are going to be a lot of people out of work and government is going to have to furnish food for them. There’ll be a lot more stealing and stuff then there was back then.

I’m on Social Security and I moved in with my son and his wife. I have got it pretty good right now. But when you go through it once, you do kind of wonder.

OUT OF WORK

NAME: Marty Evans, 80, Boca Raton, Fla.

HIS STORY: I was born in Philadelphia. My father owned a grocery store. That didn’t last once things got really tough. He allowed people to buy on credit. They couldn’t pay. He lost that business.

We moved to New York and he worked in the food business. Then we moved back to Philadelphia. My father borrowed some money, bought a truck and went around collecting batteries and tires and selling the m.

I remember things being really tight. I remember not being able to get that ice cream cone I wanted so badly from time to time. I remember being taught to be very careful with my clothes. I remember my mother having to go to work. She was a salesperson in department stores, which left me in charge of my younger brother.

I don’t think it’s going to get to the point where it was back then. You know anything is possible, but as clumsy as the powers that be are, at least they are doing something today that they didn’t do in ’29.

I’m not as free as I was two years ago. I clip coupons now out of the newspaper. My wife is recovering from a stroke; even with the insurance, medical bills are murder. Medication is another story.

If I had to, absolutely I would go back to work. But then who the heck is going to hire me?

CHILI MAC FOR 20 CENTS

NAME: George Eckhoff, 95, Seattle

HIS STORY: It was bad. We had to dig up rent money and go around to the meat market and get a soup bone for a dime maybe to make up some soup and scrounge up some vegetables. I remember seeing lines of people trying to get their money out of the bank. And of course the bread lines.

My dad was out of work. I delivered telegrams. That helped quite a bit.

We had clothing and shoes — food was the hard part. I used to get a tip now and then. I could get my own meals when I was working. I could get a chili mac and a nice piece of French bread for 20 cents.

I had an idea this was coming on. I read the news. They are overbuilding — they did that before the Depression. A lot of buildings didn’t get finished.

I don’t know how people will make it this time. Everything is up so high. We could get food pretty cheap. You can’t do that now.

WILL THERE BE ANYTHING LEFT?

NAME: Ruth Swan, 92, Washington, D.C.

HER STORY: The day that the crash came, I lived in a coal mining town in Pennsylvania. My dad was in the real estate business, but he also had a lot of stocks on margin (borrowing money from a broker to buy stock). I remember he was home all day long on the telephone. I can still see him sitting at the telephone.

My dad tried to find other real estate activity in the area but was not successful. Nobody was buying and nobody was selling. My dad was lucky. He came from a big family. He was one of 12 children and he borrowed money to keep us going.

So we did not starve, we were not deprived, but it was a difficult time I’m sure for my mother and father.

He had a driver take him to New York up and down all the real estate places and he finally got a job. So the year that I graduated college in 1937, he moved the whole family plus the maid to New York City.

It’s not cheap living here (in a senior community). But what can I do? I just want to be able to continue to pay for what I have to pay for while I’m alive, and of course, I save money for the kids, but who knows if there is going to be anything left?


Copyright 2008 The Associated Press.


Attorney Gordon Johnson
Past Chair Traumatic Brain Injury Litigation Group, American Association of Justice
g@gordonjohnson.com :: 800-992-9447 :: Attorney Gordon S. Johnson, Jr.

Hunt for retirement jobs stepped up in bad economy

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Posted on 29th October 2008 by gjohnson in Uncategorized

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Date: 10/29/2008
By DAVE CARPENTER/AP Business Writer

CHICAGO (AP) _ It sounds like an oxymoron, but the concept of working in retirement is fast becoming the norm for many older Americans — forced by dwindling financial resources and a recessionary economy to stay in or return to the job market.

Longer lifespans and a desire to remain productive and connected already had begun pushing the number of older workers higher. Now the financial crisis is accelerating interest in working later, with career sites and organizations for seniors and older workers reporting a surge in job-hunting efforts.

Sixty-three-year-old Marian Austin of Alfred, Maine, is among those who need to work again just to make ends meet in retirement. In this economy, her late ex-husband’s Social Security isn’t nearly enough.

“It’s been difficult,” said the former gift shop owner and retail manager, who retired two years ago. “I don’t know how I will pay for fuel oil for heating. I can’t walk into a grocery store and buy what I want. I don’t look forward to Christmas because I can’t buy gifts this year.”

AARP, the nation’s largest advocacy group for older Americans, saw dramatic evidence of the trend in September when more than 2,000 people attended its annual job fair in Washington, D.C., more than double the previous year’s attendance. The job-seekers included many who had been recently laid off and retirees worried about the economy and the pressure on their limited resources.

“We’ve definitely seen an increase in the sense of urgency in terms of jobs,” said Deborah Russell, the organization’s director of work force issues.

A market for retirement jobs essentially emerged a decade or so ago. Now postings for those at or approaching retirement age are an important and growing phenomenon in the labor market, as evidenced by online job boards that include RetirementJobs.com, RetireeWorkforce.com and Seniors4Hire.org, which cater to not just retirees but anyone 50 and older.

Demand for such resources is only likely to grow with the graying of the work force expected to continue. Workers age 65 and over are expected to account for 6.1 percent of the labor force by 2016, up sharply from 3.6 percent in 2006, according to the U.S. Bureau of Labor Statistics.

“For decades we’ve been making it easier for people to get out of the labor market,” said Marc Freedman, CEO of Civic Ventures, which focuses on helping older baby boomers launch second careers involving social contribution. “Now there’s a growing need in the opposite direction.”

Despite the increased opportunities, seniors may find the job market for them is as tight as for everyone else in a struggling economy.

Going back to work part-time should help Austin get by, but getting hired for a worthwhile job in retail, merchandising or working with disabled people is proving tough. She wonders if age discrimination is a factor.

“A lot of these folks who are hiring are in their 20s or 30s and they think people in their 60s are ancient,” she said. “If it comes down between you, with a lot of experience, and a younger person, I feel they’re going to go with the younger person.”

One concern is that, despite their strengths, older workers often are perceived to resist training, dislike answering to younger bosses or have poor computer training, according to AARP’s Russell. Seniors need to assess their skills and seek out job-searching tips, particularly if they haven’t gone through the process in recent years, she said.

“The job market has changed,” Russell said. “Employers are accepting job applications online, they expect to see your resume online, interviewing has changed, so it’s important to keep up.”

AARP has a program that helps age 50-plus workers with job opportunities — its National Employer Team, which connects job-seekers with a wide variety of opportunities.

RetirementJobs, which lists more than 30,000 jobs across all 50 states, has seen a surge of retirees come to its site since the economy soured, with traffic doubling to 400,000 visitors a month between July and September.

“About four to six months ago we started seeing a significant new group of people, already retired, who needed to return to work,” said Bob Skladany, chief career counselor at RetirementJobs and an adviser to AARP on work-related issues.

On top of that, he said, the wave of layoffs this fall has been bringing in younger job-seekers from 50 to 53.

The good news is there are still plenty of jobs available for the 50-and-up work force, he said. Sectors that are hiring in significant numbers include health care and home health care, retail and hospitality, and customer service openings of all kinds exist, Skladany said.

On the plus side, mature workers appeal to many employers because they are seen as hard-working and more dependable and loyal than younger peers. That makes it much more common for companies to now hire people up to their mid-60s, according to Bob Hoberman, a partner at Holmdel, N.J.-based RW Consulting Group, which operates RetireeWorkforce.com.

Still, getting hired at 65 or over by a new firm can be challenging, he said. Employers may not want to hire older workers because of health concerns or other issues.

“I think companies certainly are looking to retain their own people over 65, and it’s not going to be unusual at all for people to work till age 70,” Hoberman said. “But whether they’re as willing to hire someone over 65 from the outside remains to be determined.”

___

On the Net:

www.aarp.org

www.retirementjobs.com

www.retireeworkforce.com

www.seniorsforhire.org

Copyright 2008 The Associated Press.
Attorney Gordon Johnson
Past Chair Traumatic Brain Injury Litigation Group, American Association of Justice
g@gordonjohnson.com :: 800-992-9447 :: Attorney Gordon S. Johnson, Jr.