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Seniors: Promoting a Secure and Healthy Retirement for Seniors

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America’s seniors deserve a full life and a happy retirement. Unfortunately, deficiencies in our health care system, few meaningful incentives to promote saving, frequent instances of abuse, and turmoil in the stock market leave many seniors with tough choices as they reach retirement. Kay Hagan believes we need to honor our seniors by ensuring they have the means to retire with dignity and the access to services that provide high quality care.

In the U.S. Senate, Kay will fight everyday for the rights of North Carolina’s 1.1 million seniors. Specifically, she will work vigorously to implement policies that:

• Ensure Security in Retirement
• Provide Quality Care for Seniors
• Protect the Well-Being of Seniors

ENSURE SECURITY IN RETIREMENT

The ability for seniors to retire with financial security is fundamental to the American Dream. Unfortunately, because of factors like rising unemployment, reductions in home values and turbulence in the stock market, many seniors face an uncertain financial future when they seek to retire or cut back on work. The lack of access that many Americans have to significant retirement plans and the concerns that many have about the long-term solvency of our Social Security system – which has served seniors well for approximately three-quarters of a century – also threaten seniors’ financial security. Kay believes that we need to keep our promises to seniors by providing them the opportunity to retire comfortably.

Protect Social Security for Today’s Seniors and Future Generations. Social Security has been a vital safety net for America’s seniors for over 70 years, and Kay will forcefully oppose any efforts to privatize Social Security. While Social Security’s finances are secure for at least another generation, Kay recognizes the importance of guaranteeing the long-term solvency of the system without limiting eligibility or reducing benefits. She will use the lessons she learned as the co-author of five consecutive balanced budgets in North Carolina to help get our fiscal house in order, which is the critical first step in protecting Social Security. Kay recognizes that Congress will not be able to develop a long-term solution to Social Security without slashing wasteful spending, demanding enforcement of pay-as-you-go rules, and closing tax loopholes for big, multinational corporations so that we can stop borrowing hundreds of billions of dollars from foreign countries. The financial crisis on Wall Street demonstrates the danger of gambling seniors’ Social Security money in the volatile financial markets.

Institute a Universal 401(k) for Retirement Savings. Kay believes that every employee should have opportunities and incentives to save for retirement. Unfortunately, most savings incentives plans are only available to the wealthy, who need the least help saving. In particular, most of the benefits of tax-deferred 401(k) plans, which allow employees to contribute a portion of their paychecks to an investment account before taxes and typically feature dollar-for-dollar matching by their employers, go to higher-income workers, while independent contractors, the self-employed, and lower-income workers have fewer avenues to save. Kay believes we can eliminate this disparity by creating a universal 401(k) for employees. The universal 401(k) would feature the following elements:

• Automatic enrollment into 401(k) plans for employees who take a job with an employer that already sponsors a 401(k) program
• Requirements that any employer-sponsored 401(k) plan contain less risky investment options
• Transparent and reasonable administrative costs that do not hide fees from 401(k) account holders
• Portability of 401(k) accounts when workers change jobs

Encourage Small Businesses Without Pension Plans to Offer Automatic IRAs. Kay also believes that we should encourage small businesses that do not sponsor 401(k) plans or other pensions to persuade their workers to save. She supports a plan that would offer a tax credit to small businesses that automatically enroll all employees who desire to maintain individual retirement accounts (IRAs). As with current IRAs, these automatic IRAs would not require employers to contribute matching funds to their employee’s accounts. However, to promote saving, workers would be able to directly deposit a portion of their paycheck into their automatic IRAs if they choose to do so. Furthermore, employees would have the option to automatically increase their contribution to their IRA if their salaries rise. Employers would have discretion to choose the IRA provider for their employees, but employers could also let the employees choose their own. By default, employees’ investments would be directed toward diversified, low-risk funds.

Protect Working Seniors. Approximately one-fourth of all seniors ages 65-69 continue to work rather than retire. These experienced and skilled workers contribute significantly to their companies and to the economy as a whole. In fact, as the working-age population declines, seniors will be increasingly called upon to work later in life in order to provide for their families and to have the ability to comfortably retire. Kay believes that our government should encourage employers to compensate these employees at a fair value and should prohibit unlawful discrimination against older workers. As a U.S. senator, she will back legislation that:

• Bolsters the Age Discrimination in Employment Act. Kay believes that the ADEA represents a significant safeguard against age discrimination and should be funded fully. She also believes that the Equal Employment Opportunity Commission (EEOC) should have the resources it needs to investigate claims of age discrimination.
• Provides a tax credit to employers who maintain full pension and health care coverage for older workers. Kay supports a tax credit – worth up to 25 percent of the first $6,000 of wages paid to workers 62 years and older – for businesses that allow such workers to participate in flexible or part-time employment and that provide full pension and health coverage.
• Prohibits employers from reducing the benefits of employees undertaking a phased retirement. Kay will work hard to amend the Employee Retirement Income Security Act (ERISA) to ensure that senior workers with defined-benefit pension plans do not have their benefits reduced when they begin to work on a part-time basis after 30 years or more of service.

Change Bankruptcy Laws to Protect Worker Pensions. Kay is disturbed by several recent instances, such as the Enron collapse, in which the pensions of workers and retirees have been wiped out during bankruptcy proceedings of companies, even as senior executives continue to “earn” bonuses or worse, receive a “golden parachute” severance package on their way out the door. She believes that, rather than allowing CEOs to profit from bankruptcy, our laws should prioritize workers’ compensation and pensions. Kay will support legislation that restricts the ability of bankruptcy courts to permit executives to take bonuses or exorbitant severance packages, even as workers lose their jobs and retirees lose their benefits.

PROVIDE QUALITY CARE FOR SENIORS

Kay believes we must do more to improve long-term care for our seniors. Our system of long-term care should ensure that senior citizens have the option to stay at home or have access to a nearby facility where they can receive care. In either context, Kay will promote strong standards and adequate oversight to improve the care that seniors receive and will reward family members and other caregivers who protect their loved ones. She also will support efforts to reform Medicare, so that seniors have access to quality and affordable prescription drugs and health insurance that does not overcharge patients and other taxpayers.

Strengthen Medicaid Support for Home Health Care. Most seniors prefer to receive home or community-based health care, rather than institutional health care provided by nursing homes. However, over 60 percent of Medicaid funding for long-term care is spent in institutional settings, despite studies indicating that home health care is both more effective and more popular than nursing home care. As a result, approximately 280,000 Medicaid patients are on waiting lists to receive reimbursement for home or community-based health care. Kay believes that more seniors in North Carolina should have the ability to remain independent in their homes rather than being forced into a nursing home in order to receive Medicaid. She will support legislation that gives seniors the choice under Medicaid to decide which long-term care that best suits them. This measure will not only allow seniors to receive the type of care they need, but will also ensure greater efficiency in long-term care provision.

Improve Support for Elder Care. An estimated 5.5 million seniors receive long-term care and the vast majority of these services are performed by spouses and adult children. Family caregivers provide a variety of vital services, including assistance with personal needs, management of medication regimens, preparation of meals and communication with health providers. Unfortunately, many such caregivers, despite doing the best they can, face difficulties in providing support because they live far away from their loved ones, have competing needs to care for children, and desire to maintain a balance between caregiving, work and other aspects of life. These problems will only increase as the senior population rises and the caregiver population likely decreases in the coming years. Kay believes that family members have a responsibility to care for loved ones in need. However, she also recognizes the financial and emotional hardships placed on caregivers and believes the federal government should provide support to the caregivers who dedicate their time and attention to loved ones. Moreover, she understands that we must develop a long-term solution to elder care in order to meet the growing demands of our senior population. In the U.S. Senate, Kay will fight to implement measures that:

• Permit lower-income caregivers to qualify for the Dependent Care Tax Credit (DCTC) for expenses related to elder care for loved ones. In particular, Kay will seek to expand the amount of the tax credit over a period of years and increase the eligible population of dependents to which the tax credit would apply, subject to income levels. At a minimum, Kay believes the DCTC should apply to expenses incurred from caring for parents, in-laws and grandparents who do not reside with the caregiver.
• Provide full funding for the National Family Caregiver Support Program. This initiative, which allots grants to states to provide information, counseling and support services to caregivers assisting seniors with physical disabilities, Alzheimer’s disease and other chronic conditions, is important because it is tailored to help caregivers who are over 60 years of age or have minimal income.

Make Sure That Nursing Homes Are Safe for Seniors. Many nursing homes provide safe, affordable, and quality care to seniors. Unfortunately, at some nursing homes, seniors who are in frail condition are vulnerable to abuse from employees with criminal intentions. Kay believes the federal government owes it to America’s seniors to develop national standards to stem such abuse. She will support legislation that:

• Requires transparency and accountability from nursing homes. Kay believes that nursing homes should be required to disclose more information about the quality and quantity of their staff to make sure that residents are receiving optimal care. Such a measure would also increase fines for nursing homes that provide substandard care and would permit the Department of Health and Human Services (HHS) to monitor and oversee large nursing home chains to identify systemic abuses.
• Create a streamlined criminal background check system for nursing home employees. A pilot program has been set up to determine the feasibility of implementing a nationwide criminal background check system to identify criminal convictions of potential employees of long-term care facilities. While states currently manage the pilot background check system, the federal government could coordinate it among states to ensure that individuals with a criminal background in one state would be detected when applying for nursing home employment in another state. If this program proves to be cost-effective and viable, Kay believes there is potential for this system to protect seniors from abuse in nursing homes, and she would work to expand the program and make it permanent. Kay also believes Congress should investigate whether the FBI could integrate its fingerprint database with the background check system, which would help state law enforcement agencies and nursing homes to know if an employee commits a crime after the initial background check.
• Allocates full funding for nursing home enforcement. Appropriate funding for enforcement will allow nursing home certification agencies to conduct frequent and extensive on-site inspections to ensure the safety and comfort of the increasing number of nursing home residents.

Incentivize Primary Care Doctors to Practice Geriatric Care. Our country is experiencing a serious shortage of primary care doctors certified as geriatricians, who are trained to identify and treat health problems faced by seniors. The American Geriatrics Society reports that there are only 7,128 geriatricians in the United States and that fewer than 100 medical school students enter geriatrics training after graduation. The Society concludes that the forthcoming rise in our senior population over the coming years will leave only one geriatrician per every 4,254 seniors in 2030. Kay will support legislative initiatives that incentivize doctors to receive training in, and ultimately practice, geriatrics. In particular, she believes that we should forgive the loans that doctors use to pay for geriatrics training. Kay will also direct the Medicare Payment Advisory Commission to evaluate the current formula for reimbursing geriatricians to determine whether Medicare provides sufficient incentives for physicians to practice geriatrics.

Eliminate Gaps and Reduce Prescription Drug Prices in the Medicare Prescription Drug Benefit. The intense involvement of the pharmaceutical and insurance industries in drafting the Medicare prescription drug benefit legislation left the law flawed in significant and outrageous ways. Unlike the VA health care system, the prescription drug law actually prohibits Medicare from negotiating lower prices with drug companies, which results in higher prescription drug costs for seniors. In addition, the law contains a “doughnut hole” that provides no benefit to seniors for annual prescription drug costs between $2,250 and $5,100, even as they continue to pay monthly premiums. This gap affects nearly one-fourth of all seniors enrolled in the program. Kay believes that Congress must significantly reform this law to ensure that all seniors have access to prescription drugs at affordable prices.

PROTECT THE WELL-BEING OF SENIORS

After providing for their families and their country, seniors deserve a comfortable retirement free from exploitation and neglect. Unfortunately, there are individuals in our society who will seek to prey upon seniors. Kay will work hard to protect seniors from fraud and abuse. She will also support measures that assist economically vulnerable seniors with housing and heating costs.

Prevent Fraud Against Seniors. In the North Carolina Senate, Kay has been a leader in promoting financial education for all North Carolinians, from school age through adulthood. She believes that financial education is beneficial in helping Americans balance their household budgets, choosing investment options, and preventing fraud. Unfortunately, according to the FBI, seniors are particularly susceptible to fraud because they do not know to whom they should report fraud or are simply unaware that a fraud has been perpetrated against them. As a U.S. Senator, Kay will seek to establish a program that authorizes the U.S. Department of Justice to disburse grants to organizations that provide financial education services to seniors. Such services will focus primarily on preventing consumer fraud, such as deceptive sweepstakes and telemarketing schemes, and insurance fraud by long-term care insurers. Kay believes that seniors who are armed with this information will be much less susceptible to financial exploitation.

Enact the Elder Justice Act. Kay believes that we must develop a coordinated approach to prevent mental, physical, and financial abuse against seniors, particularly those seniors who are most vulnerable in long-term care facilities. In the U.S. Senate, she will support the proposed Elder Justice Act, a bipartisan bill which authorizes the U.S. Department of Health and Human Services to allot grants to states for protective services for seniors and to disseminate information data regarding elder abuse. The bill also creates an Elder Justice Coordinating Council within HHS and establishes an advisory board to develop recommendations for preventing and enforcing against elder abuse. Furthermore, the legislation supports state ombudsmen, who are critical to responding to elder abuse and neglect complaints.

Support Affordable Housing for Seniors. Many low-income seniors depend upon the Section 202 Supportive Housing for the Elderly Program, which disburses grants to non-profit organizations to develop supportive housing and rent assistance for these seniors. Unfortunately, the Bush Administration has attempted to eliminate funding for this important program, even as the need for supportive senior housing grows and as existing supportive housing diminishes over time. Kay will push for adequate funding to strengthen the Section 202 program and will support legislation that permits developers to refinance their interest in aging housing developments that require renovation.

Help Low-Income Seniors Heat Their Homes. Rising oil prices and depleted oil and natural gas inventories signify that low-income seniors will struggle to pay their heating costs this winter. Unfortunately, Republicans in Congress have frequently opposed full funding the Low-Income Heating Assistance Program, which disburses grants to states to provide assistance for home heating and cooling costs endured by individuals well below the state’s median income. As a result, LIHEAP has been underfunded by approximately $2 billion for years, a shortfall that precludes states from adequately addressing the high cost of home energy for low-income seniors. Kay will support full funding for LIHEAP, which will allow more low-income seniors to receive home energy assistance and will increase the amount that such recipients receive in the face of rising energy costs. She will also promote the Weatherization Assistance Program, which allocates grants to states to make homes more energy-efficient and thereby reduces energy costs for residents.

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