ShAARP Session: Observations from AARP

There is plenty of useful information for you in the Wall Street Journal's online "Ask Encore" page from this weekend. First, AARP provides the answer to a reader's question on reverse mortgages: why aren't the interest charges and fees on reverse mortgages tax deductible? According to the answer from AARP, it's because with a reverse mortgage, the "actual payment" doesn't happen until the borrower sells their home or dies - so the borrower cannot claim a tax deduction until that point. Check out the page - the WSJ also tackles questions this week on Roth IRAs and inheritances.

From CNNMoney.com today, there is an article bringing a "little-noticed" proposal to light - one that would set aside $8 million for states to help protect seniors who are buying complex investment products. States would get money to investigate and prosecute fraud against seniors and would target annuities, which are "contracts in which customers pay a lump sum upfront in exchange for monthly income over time." Read the article on CNNMoney for all the lowdown.

Finally - one more story from the WSJ. This one focuses on the "Medicare maze" and directs you to tools that can help you figure out what coverage is best for you. Some of the tools cost money while others are free, and the article points you to AARP's Doughnut Hole Calculator to figure out if a drug plan will leave you in the "doughnut hole" gap in coverage.

Check out this editorial in Politico from Nancy LeaMond, Executive Vice President at AARP. She talks about the "sobering" realities that senior citizens face when it comes to health care, and where AARP stands on the issues at hand with health care reform. She discusses the need to close that "doughnut hole" in Medicare prescription drug coverage, and that discrimination by insurance companies must end. LeaMond says:

"AARP has been fighting for years to abolish age rating for the same reasons that we want to end private insurance discrimination based on a person's gender or medical history: because fairness is a fundamental American value, and arbitrary discrimination in any form runs counter to who we are. This year we have an opportunity to make great progress toward ending discrimination and ensuring that those who need affordable, high-quality health care can find it."

In other News of Note...
Here is an article worth checking out from the Wall Street Journal. It talks about an interesting dilemma: how caring for your aging parents can cause problems in your career - especially when it comes to relocation for that career. The story highlights the stories of three executives who had to do just that - and how each of them tackled the problem and found a solution in different ways.

Martha Hamilton has a piece up at AARP Bulletin about the dilemma that millions of Social Security recipients are facing for 2010: not only will there be no Social Security cost-of-living adjustments, but a hike in Medicare premiums that will leave them in a serious financial bind. The good news is that Congress is taking action.

Tricia Neuman and Juliette Cubanski of the Kaiser Foundation also have a really useful brief on the issue, explaining the relationship between the Social Security COLA and the Medicare Part B premium, and what's at stake for those covered by both programs. Check that out for a good background on the issue, and Hamilton's piece on what is being proposed to help the situation, at least temporarily - the House just passed by a measure that would freeze Part B premiums for the coming year (and the Senate will likely to follow). But another problem is also weighing; others may see a reduction in their SS checks due to Part D premiums.

In short, there is much to be done to ensure Social Security recipients aren't left out in the cold. Let's just hope the work pays off.

Happy Monday!

Yesterday, The New York Times ran a story on the heated debate among AARP's generation gap, focusing on a dinner gathering of AARP members that took place in Wisconsin last week. That dinner was just one of 37 in Wisconsin alone over the past six weeks. AARP's intensive campaign to address the concerns of its older members has paid off, according to the article, with support for an overhaul growing as the campaign kicked into high gear over the past few months.

The article portrays the concerns of a wide range of AARP members, and also quotes David Certner, director of legislative policy for AARP and Nancy LeaMond, executive vice president of AARP.

In other news, an interesting story in the Chicago Tribune advises retirees to consider taxes when thinking of relocating in retirement. It's worth checking out. The author says, "No matter where you live, your federal taxes will be about the same. But you'd be amazed at how much your state and local tax burden may vary."

Finally, an AP story that got a lot of pickup over the weekend explained the waiver of the government required withdrawal from IRAs and employee-sponsored 401(k)s and profit sharing plans. The requirement is that once a person reaches 70 ½ years of age, they must withdraw money (called required minimum distributions) - but a law passed last year temporarily lifted that requirement to prevent retirees from having to withdraw from accounts that were hit hard by the stock market. It's temporary relief - but it's relief!

I've been getting a lot of questions in my inbox lately, and below is one of the most commonly asked. It's my hope that by answering these questions we can get the word out about why health care reform is important and debunk some of the myths that are floating around right now.

Q: We're worried health-care reform may go too far. Will we be forced into a plan or have to change doctors?

A: AARP will not support reform that would deny you the freedom of choice to keep your current plan, including keeping your current doctor. That's what AARP's fight for health-care reform is all about--creating the kind of quality, affordable, and uniquely American health-care system you want.

AARP's policy agenda is driven by you, our members. We developed our health-care reform priorities from nationwide member surveys, from member focus groups in a number of cities, and from the thousands of letters and phone calls we've received. You've told us what you need and what you want in health-care reform, and that's exactly what we've been fighting for.

Those of you who like your current plan and your doctors have told us in no uncertain terms that you want to keep them. Those of you ages 50 through 64 who have had trouble getting coverage have told us that you're tired of being told you can't get insurance because of an illness you had five years ago, or because of some other preexisting condition, or because of your age. AARP supports reform that ensures Americans ages 50 through 64 a real choice of quality, affordable health-care plans.

Those of you on Medicare let us know, in overwhelming numbers, how the Medicare Part D prescription-drug coverage gap--the dreaded "doughnut hole"--is hurting you. Annually, about one-quarter of Part D enrollees fall into the gap, paying so much more for brand-name meds that some people stop taking them altogether. Only 4 percent make it across the gap to the other side, when costs drop substantially.

There is good news at press time: AARP has endorsed an agreement--brokered by Sen. Max Baucus (D-Mont.)--between President Obama and U.S. drug manufacturers, who have offered to pay half the costs for most people who reach the coverage gap, as part of health-care reform legislation. This could take effect as early as July of next year. (For more information on dealing with the doughnut hole, see the "Drugs for Less" sidebar on this page.)

Another serious problem we've been hearing more about lately is that of hospitals discharging older patients without any follow-up, or "transitional," services. One of every five Medicare beneficiaries is readmitted within 30 days of discharge; and one of every three, within 90 days--often because of poor communication between patients, caregivers, and health-care providers. We need a benefit in Medicare to help people safely transition to home or another setting to prevent costly and unnecessary hospital readmissions.

Our work is to see that you get more from health-care reform, not less. You deserve the peace of mind of knowing you will always have quality, affordable care. But we need your support to persuade Congress to act on AARP's commonsense health-care reform priorities. Please visit our health-care reform Web site--healthactionnow.org--to see how you can make a difference in getting to needed solutions.

If you have a question and would like me to answer it you can send it to:

Dear Jennie
AARP
601 E Street NW
Washington, DC 20049
or e-mail DearJennie@aarp.org.

One of the most common questions I'm asked when I meet with volunteers and attend health care reform events is, "We're worried health care reform may go too far. Will we be forced into a plan or have to change doctors?"

In this month's AARP The Magazine, I answer that question but I wanted to share it here, too.

AARP will not support reform that would deny you the freedom of choice to keep your current plan, including keeping your current doctor. That's what AARP's fight for health care reform is all about--creating the kind of quality, affordable, and uniquely American health care system you want.

Those of  you who like your current plan and your doctors have told us in no uncertain terms that you want to keep them. Those of you ages 50 through 64 who have had trouble getting coverage have told us that you're tired of being told you can't get insurance because of an illness you had five years ago, or because of some other preexisting condition, or because of your age. AARP supports reform that ensures Americans ages 50 through 64 a real choice of quality, affordable health care plans.

Those of you on Medicare let us know, in overwhelming numbers, how the Medicare Part D prescription-drug coverage gap--the dreaded "doughnut hole"--is hurting you. Annually, about one-quarter of Part D enrollees fall into the gap, paying so much more for brand-name meds that some people stop taking them altogether. Only 4 percent make it across the gap to the other side, when costs drop substantially.

AARP has endorsed an agreement--brokered by Senator Max Baucus (D-Mont.)--between President Obama and U.S. drug manufacturers, who have offered to pay half the costs for most people who reach the coverage gap, as part of health care reform legislation. This could take effect as early as July of next year.

Another serious problem we've been hearing more about lately is that of hospitals discharging older patients without any follow-up, or "transitional," services. One of every five Medicare beneficiaries is readmitted within 30 days of discharge; and one of every three, within 90 days--often because of poor communication between patients, caregivers, and health care providers. We need a benefit in Medicare to help people safely transition to home or another setting to prevent costly and unnecessary hospital readmissions.

Our work is to see that you get more from health care reform, not less. You deserve the peace of mind of knowing you will always have quality, affordable care. But we need your support to persuade Congress to act on AARP's commonsense health care reform priorities. Please visit our health care reform website--healthactionnow.org--to see how you can make a difference in getting to needed solutions.

Since the cost of health care has gone through the roof, anything that can be done to find some savings in this area should be considered. So naturally when Senators Mel Martinez (R-FL), Bill Nelson (D-FL) and John Cornyn (R-TX) sponsored the STOP Act to prevent Medicare Fraud, AARP loved the idea and endorsed the bill. With billions of dollars being lost to Medicare fraud, this bill is a great step in improving the quality of Medicare while also curbing unnecessary spending. Improving Medicare is extremely important, but it is just one of AARP's many health reform priorities.

While it’s been quite a dramatic year, older Americans have had many victories to celebrate as 2008 comes to an end. Here are a few reasons we have to celebrate:

• The passage of the economic stimulus package, which will extend stimulus support to about 20 million Americans who depend on Social Security.
• Our Keep Medicare Fair campaign came out victorious when Congress overrode President Bush’s veto of the Medicare reform bill.
• Most recently, a bill that would waive penalties for retirees for mandatory withdrawals in 2009 passed the House and the Senate, now awaiting Bush’s signature.

With that being said, there’s obviously a lot of nervousness about larger looming problems for the new year, such as the future of the economy and the health care crisis. With the new Obama administration to focus on change for this country, what should be America’s resolutions for 2009? More specifically, what issue means the most to you? Take our poll and let’s open up the discussion in comments!

Medicare Part D enrollment starts in just a few days (November 15), so this is the perfect time for AARP to answer your questions.

For those who don't know, Medicare Part D gives you insurance that assists you in paying for prescription drugs. And AARP.org has a special guide to help you choose a plan that's right for you. There is even a glossary of terms. As an intro, here are six important facts you should know about Medicare Part D program:

1. Anyone on Medicare can get drug coverage regardless of income or health.
2. You are not obliged to sign up (but there may be financial consequences if you don't enroll when you're first eligible to do so).
3. To get Medicare drug coverage, you must select one approved private drug plan among many offering different choices. There is no single government plan.
4. Is your income limited? If you qualify for a part of the program known as Extra Help, you'll pay very little for your medications.
5. Are your drug costs very high? You'll pay no more than 5 percent of the cost of each prescription after you've spent a certain amount out of pocket in any one year.
6. Do you have better drug coverage already? You probably won't need Medicare's Part D coverage. But it's wise to check.

Find more here!

When it comes to tests, scoring over 90% tends to be a good thing. When you're talking about the percentage of nursing homes that were cited for violations during inspections, not so much. As part of an effort to improve quality in Medicare, the government has stiffened standards and greatly increased inspections for nursing homes. The most common violations: "improper storage and distribution of food, accident hazards and lack of services necessary for residents' mental and physical well-being". Looks like these facilities haven't gotten the message yet.

AARP Bulletin has a great article on why Medicare rocks right now.

The Medicare Improvements for Patients and Providers Act (MIPPA) was passed into law last month, granting new protections and benefits to millions of Medicare recipients. While the media was focused more on the primary aim of MIPPA (which was the 10 percent cut in Medicare payments to doctors) and Congress' rejection of President Bush's veto of the legislation, AARP gives us the lowdown on what MIPPA really means for Americans.

Between making many low-income individuals now eligible for Medicare and making mental health care more affordable, this legislation is changing many people's lives. Make sure to check it out.

If you also have a general question about Medicare, you can also check out the Q&As answered by AARP's Ms. Medicare or email her at msmed@aarp.org.

We ain't talkin' about Dunkin' Donuts either. Via Forbes, we find that last year, about 3.4 million Americans enrolled in the Medicare Part D drug plan encountered a gap in their prescription coverage, otherwise known as the "doughnut hole," leading some of them to stop taking their prescribed drugs altogether.

This comes from a new Kaiser Family Foundation study, which found 26 percent of Part D enrollees who filled any prescriptions in 2007 reached the coverage gap. (Not to mention 22 percent who were stuck in the hole for the rest of the year and 4 percent who eventually received catastrophic coverage.)

Poorna from H.M. Press isn't pleased either:

So let me get this straight, our government forces Medicare onto the 65+ age group, but then most of them who are on numerous medications, some of them very pricey, will "fall" into the donut hole, and many of them may never get back up. This is yet another serious problem with our health insurance that needs to be fixed.

The researchers also found that many enrollees also altered their usage of prescribed medication due to the coverage gap. Kaiser CEO and President Drew Altman reminds us that the new presidential administration is an opportunity for change:

"The Medicare drug benefit has produced tangible relief for millions of people, despite the unusual coverage gap that was created to make the benefit fit within budget constraints... But if a new president and Congress consider changes to the drug benefit, it will be important to keep in mind that the coverage gap has consequences for some patients with serious health conditions."

Check out some more info on Medicare prescription drug coverage at AARP's policy and research hub.

While Medicare has been through quite a bit of drama this year, there is a simpler question about the health care program we can ask ourselves in the meantime: is Medicare speaking to its users in a language they can understand? More specifically, is its website user-friendly?

Older Americans use the internet, and use it well; that's no big news to us. But a new study showed that three-fourths of older adults couldn't find a beneficial drug prescription plan on Medicare's website, as well as couldn't seem to figure out a way to sign up for home care service. In short, Medicare's website might not be as easy to navigate than it should be.

The researchers even did a brief training before the 112 participants aged 50 and older began to use the site. Some subjects even stopped searching after a while. Researcher Sara Czaja, co-director of the Center on Aging at the University of Miami Medical School, says, "There are some problems ... some design features with the site that make it difficult for people to use, and they can't get the maximum value out of it," adding, "Some of them just gave up trying."

A CMS spokesperson said that while they've done their own extensive research to make sure the site's navigation is easy to handle, and "[m]ore research is probably needed to assess the usability of the site, and should be performed by people who have a basic understanding of the size and complexity of the program."

Speaking of questions about Medicare, AARP.org has a feature up, "Ask Ms. Medicare" with this week's question: When should I sign up for Medicare? Check it out!

It was such an important moment for us as AARP to be so visible and present at this Medicare rally at the Capitol. Seeing members from both sides of the aisle come together to assure that important provisions of Medicare are preserved and enhanced for this program was inspiring. Most of all we all became more hopeful that we can work on breaking political gridlock and get back on track to secure our collective well being for our country.

We will all benefit from having physicians receive adequate compensation, seeing that the efficiency and safety of using technology for e-prescribing, assuring that our retired military are also cared for and ultimately - older Americans see an overall improvement in their health care.

A big thanks to our many volunteers who were able to be present in their famous AARP red tee shirts..it was a visual reminder to all of our collective voice.

Medicare is an enormous buyer of all things medical, including durable medical equipment. This is includes items like wheel chairs and canes amongst others. The question is, just how well does Medicare investigate those companies it buys products from? Well, the Government Accountability Office (GAO) was apparently wondering the same thing and set up an investigation. They created two phony companies, came up with fake suppliers and rented commercial space for offices. So what did they discover? After some initial difficulty, the made-up GAO companies were able to gain a Medicare billing number and could have fraudulently charged for equipment they never distributed or even had. This is important because if GAO can pull this off, so can people with more devious intentions. Medicare, for its part has said it is rolling out a more vigorous plan to vet suppliers and prevent fraud.

From the camera phone of one of our volunteers...the rally to override the President's veto is just beginning!

That's right folks, President Bush has vetoed the bipartisan Medicare bill that we've all been watching and working (and commenting on) so intently. Congress worked together to put together a bill that improved low-income, mental health and preventative health programs for people like you...your family...and your friends. The bill would help maintain the access of people in Medicare to their doctors - something every American should have!

With the state of health care already in abysmal condition and millions of Americans lacking health care - it's more important than ever that Congress overrides the presidents veto today. AARP volunteers, members and staff are up on Capitol Hill talking to our elected officials to make sure they do this. It's time for the 355 members of the House and the 69 members of the Senate to stand by their choices and finish this.

Sound off here - or give your elected official a call 1-800-795-5336.

Champ would be proud. On Wednesday, a bi-partisan group of legislators in Congress overwhelmingly passed the Medicare Improvements for Patients and Providers Act of 2008.

You, the grassroots, are largely responsible for this achievement. But we can't yet rest on our laurels. We still need to take action: President Bush is threatening to veto this critical legislation that would protect millions of Medicare beneficiaries as well as the thousands of doctors that are involved in the Medicare program.

Our friends at Keep Medicare Fair have all the tools you need to keep the pressure on our decision makers. If push comes to shove, we will have to mobilize to force congress to override a possible veto. In the meantime, tell President Bush to sign the Medicare Improvements for Patients and Providers Act of 2008 into law immediately.

Led by the dramatic and emotional return of Senator Ted Kennedy, the Senate overwhelmingly passed the House-passed Medicare bill by the score - er, um count of 69-30.

The Senate vote - like the House's passage - is strong enough to override President Bush's promised veto.

AARP CEO Bill Novelli issued a statement praising the bipartisan support that passed this bill in both chambers of Congress. Bill noted that "[this vote] shows what can happen when leaders in Washington break through partisan gridlock."

Make no mistake about it - this vote also shows what can happen when people at the grassroots get involved.

The fact is that today's Senate vote was a mulligan. Two weeks ago, the same legislative body came up one vote short on the same bill. So what changed the math? You did - and I think Senator Kennedy would agree.

Since the start of the Keep Medicare Fair campaign, AARP volunteers have called, emailed or signed petitions to their Senate offices more than 780,000 times. And when the Senate left Washington last week after failing to pass the bill the first time around - you made sure to share your thoughts in person with them at July 4th parades and community events.

Like the roar of the crowd when Senator Kennedy walked onto the Senate floor, the Senate heard you loud and clear.

Medicare enrolled its first members 42 years ago today, forever changing health care for older Americans. But today is also the deadline for Congress to pass legislation that keeps Medicare fair. Well, Congress left town over the weekend, and they still haven't passed a bill.

First things first, though: if you have Medicare, don't panic. You can still see your doctor while Congress works out the details.

But we also need to tell Congress to act quickly when it returns. Lawmakers will only have a few days to pass a bill that keeps Medicare fair. So call your senators at [get a number from Barry, maybe?] and tell them to pass H.R. 6331, the Medicare Improvements for Patients and Providers Act.

Tommy Thompson and Senator Daschle recently spoke about health care in our country at the 6th Annual John M. Templeton, Jr. Lecture on Economic Liberties and the Constitution presented by AARP and the National Constitution Center. The event is also going to be replayed on C-SPAN's American Perspectives at 6:45pm ET on July 4th.

Check out our exclusive chat with them - they even offer a few ideas about how you can do your part to help fix health care...