American Academy of Actuaries Summer Summit July 14

American Academy of Actuaries Summer Summit July 14, 2014 Economic Insecurity of Older Adults: Helping Individuals Find Resources to Meet Their Basic Needs A nonprofit service and advocacy organization © 2012 National Council on Aging 1

Agenda § The current state of elder economic security § Benefits and their importance to older adults on a fixed income • Key programs • Value to individuals and communities • Who’s missing out § NCOA projects and resources A nonprofit service and advocacy organization © 2012 National Council on Aging 2

National Council on Aging (NCOA) Who We Are: NCOA is the nation’s leading nonprofit service and advocacy organization representing older adults and the community organizations that serve them. Our Mission: To improve the lives of millions of older adults, especially those who are vulnerable and disadvantaged. A nonprofit service and advocacy organization © 2012 National Council on Aging 3

The State of Elder Economic Insecurity § More than one third of seniors are economically insecure § 96% of Americans aged 65 -69 with incomes below poverty have savings <$10, 000 § Consumers aged 65+ carried $10, 235 in average card debt § 14. 5 million (or 25%) older adults age 60+ have 2 or more chronic conditions A nonprofit service and advocacy organization © 2012 National Council on Aging 4

Characteristics of Medicare Beneficiaries • Half of all Medicare beneficiaries have annual incomes less than $23, 500 (just under 200% of FPL) in 2013 • Half of all Medicare beneficiaries had less than $61, 4000 in life time savings (including retirement accounts and other assets) in 2013 – 25% have less than $11, 300 in savings • Almost 40% have 3 or more chronic conditions and 23% have a cognitive or mental impairment • Out-of-pocket costs: – Medicare beneficiaries spent 14% of total costs on health care, more than non. Medicare households (5%) – Part B and D premiums and cost sharing increased faster than average Social Security benefit – Low-income protection programs do not provide adequate protection A nonprofit service and advocacy organization © 2012 National Council on Aging 5

Population Growth 2015 2020 2012 **Sources and Notes: NCOA analysis of the American Community Survey 2010, Public Use Microdata Files. NCOA analysis of U. S. Census Bureau, Population Division, Interim State Population Projections, 2005, File 3. Interim State Projections of Population by Single Year of Age: July 1, 2004 to 2030. The numbers in each circle are a subset of the numbers in the larger circles. Circles are not at scale. A nonprofit service and advocacy organization © 2012 National Council on Aging 6

Cost of Making Ends Meet: WOW’s Elder Index Wider Opportunities for Women: www. wowonline. org or www. basiceconomicsecurity. org A nonprofit service and advocacy organization © 2012 National Council on Aging 7

Coming Up Short: Elder Index vs Income A nonprofit service and advocacy organization © 2012 National Council on Aging 8

The importance of benefits A nonprofit service and advocacy organization © 2012 National Council on Aging 9

What do low-income seniors need help paying for? What benefits can help? § Health care Medicaid, Medicare Savings Programs § Prescriptions Extra Help (LIS) § Food SNAP § Utilities LIHEAP § Basic necessities SSI A nonprofit service and advocacy organization © 2012 National Council on Aging 10

Part D Low-Income Subsidy (LIS)/Extra Help § Administered by Social Security Administration and Medicare § Helps pay Medicare Part D (drug plan) costs for people with limited income/resources (income below 150% FPL) § Eliminates the coverage gap (“donut hole”) A nonprofit service and advocacy organization © 2012 National Council on Aging 11

Medicare Savings Programs (MSPs) § Financed by Medicaid § Help pay Medicare premiums and cost-sharing for those with low income/resources § Includes the following programs: • Qualified Medicare Beneficiary (QMB) covers Medicare premiums, deductibles, and co-pays. • Specified Low-Income Medicare Beneficiary (SLMB) covers only Part B premium. • Qualifying Individual (QI) covers only the Part B premium. A nonprofit service and advocacy organization © 2012 National Council on Aging 12

Medicaid § State programs that pay for broad range of medical services for people with low incomes, e. g. : • Visits to providers • Inpatient & outpatient hospital • Lab tests • X-rays • Medical transport • Home health services A nonprofit service and advocacy organization © 2012 National Council on Aging 13

Supplemental Nutrition Assistance Program (SNAP) § Administered by the Food & Nutrition Service of the USDA § Formerly called Food Stamps § Provides monthly funds to eligible households on EBT card to spend on food • In most states, benefits can accrue up to one year on card • Non-food products excluded • Benefits are based on household composition A nonprofit service and advocacy organization © 2012 National Council on Aging 14

Estimated Annual Value of Core Benefits Programs A nonprofit service and advocacy organization © 2012 National Council on Aging 15

Older Adults Missing Out on Benefits Each year, low-income older adults miss out on $20 billion 86% in benefits that help paying for prescriptions, healthcare, food, and utiliti of older adults currently receiving one federal benefit are also eligible for and not receiving at least one other federal benefit. A nonprofit service and advocacy organization © 2012 National Council on Aging 16

Benefits. Check. Up® Screening § Web-based tool that screens for over 2, 000 public and private benefits § Online LIS/Extra Help application § Enhanced Application Forms Center § Medicaid Office Locator § SNAP Maps and Application Form Center § Senior Housing Locator § 50, 000+ local offices § www. centerforbenefits. org A nonprofit service and advocacy organization © 2012 National Council on Aging 17

The Power of Benefits. Check. Up® Statistics (since 2001) § Number of completed screenings: Over 3. 8 Million § Total Value of Benefits Identified: Over $14. 4 Billion § Number of Benefit Application Forms Downloaded : Over 1 Million § Number of Medicare Part D Low Income Subsidy (LIS) applications: Over 500, 000 A nonprofit service and advocacy organization © 2012 National Council on Aging 18

Benefits. Check. Up® Screenings Comprehensive vs. more specific screenings for food/medicine A nonprofit service and advocacy organization © 2012 National Council on Aging 19

National Center for Benefits Outreach & Enrollment § Supported by Administration for Community Living and housed at NCOA § www. centerforbenefits. org • Benefits 101 webinar series • You Gave, Now Save consumer guide to benefits • Promising practices • Fact sheets • Resource library for professionals § www. vimeo. com/channels/ncboe A nonprofit service and advocacy organization © 2012 National Council on Aging 20

Benefit Enrollment Centers Center for Benefits Access at NCOA Appropriated $5 million with oversight by the Administration for Community Living at US DHHS § Helps community-based organizations find and enroll seniors and younger adults with disabilities with limited means into benefits programs for which they are eligible § www. centerforbenefits. org • Promising practices • Fact sheets on benefits • Resource library for professionals A nonprofit service and advocacy organization © 2012 National Council on Aging 21

Benefits Enrollment Centers or BECs A nonprofit service and advocacy organization © 2012 National Council on Aging 22

BECs Application Assistance § Health care • Medicare Savings Programs: help pay costsharing for Part B • Medicaid • Donated vision/dental services § Prescriptions • Part D Low Income Subsidy (LIS/Extra Help) • State Pharmaceutical Assistance Programs • Drug manufacturer rebate programs A nonprofit service and advocacy organization © 2012 National Council on Aging 23

Get Involved with NCOA § Visit ncoa. org and sign up to receive news, resources, and opportunities to learn and act. § Donate to support NCOA’s work: ncoa. org/Donate. § Share NCOA’s free, trusted tools with older adults. § § § Benefits. Check. Up. org Economic. Check. Up. org My. Medicare. Matters. org Home. Equity. Advisor. org Restart. Living. org A nonprofit service and advocacy organization © 2012 National Council on Aging 24

Contact Us Presenter: Leslie Fried leslie. fried@ncoa. org www. ncoa. org Follow Us on Social Media § Twitter: @NCOAging § Facebook: Facebook. com/NCOAging § Linked. In: National Council on Aging § You. Tube: NCOAging A nonprofit service and advocacy organization © 2012 National Council on Aging 25