Some Relief for Social Security Beneficiaries

The passage of the economic recovery bill means just a little bit of cash ($250 for individuals, $500 for couples who receive Social Security benefits) will go to seniors in May.  According to a recently published AARP Bulletin, the “so-called senior payment” does not require any additional paperwork; beneficiaries will receive the money in the same way they get Social Security (direct deposit or mailed check).

This payment was not included in the House’s version of the bill but was championed in the Senate by Max Baucus (D-Montana, chairman of the Senate Finance Committee) and Sheldon Whitehouse (D-RI).  AARP supported this provision in the legislation, citing research “showing that older people tend to spend such payments immediately.”

Visit the Social Security Administration website for more information.

Highlights of the Stimulus bill for older Americans, as per the National Council on Aging:

The act includes:

· $100 million for senior nutrition programs;

· $120 million for the Senior Community Service Employment Program (SCSEP);

· $87 billion to increase the federal Medicaid match to states (a 6.2 percent increase from Oct. 1, 2008 through Dec. 31, 2010);

· a one-time payment of $250 to Social Security, Supplemental Security Income (SSI) and certain veterans by the end of May; and

· the package also extends the Medicare Savings Program Qualified Individual (QI-pays Part B premiums for eligible beneficiaries) program through Dec. 31, 2010.

Elderly at Risk?

The rebate check and the boost in program funding is not enough to outweigh the other provisions in the stimulus package that may hurt vulnerable seniors, according to an opinion piece by Betsy McCaughey.

Her piece outlines the “hidden” health provisions in the legislation that could mean many seniors will not get the help they need.  For example:

“Medicare now pays for treatments deemed safe and effective. The stimulus bill would change that and apply a cost-effectiveness standard set by the Federal Council (464).

The Federal Council is modeled after a U.K. board discussed in Daschle’s book. This board approves or rejects treatments using a formula that divides the cost of the treatment by the number of years the patient is likely to benefit. Treatments for younger patients are more often approved than treatments for diseases that affect the elderly, such as osteoporosis.

In 2006, a U.K. health board decreed that elderly patients with macular degeneration had to wait until they went blind in one eye before they could get a costly new drug to save the other eye. It took almost three years of public protests before the board reversed its decision.”

McCaughey, a former Lieutenant Governor of New York and an adjunct senior fellow at the Hudson Institute, asserts that there was not enough scrutiny of the legislation before final passage, stating the stimulus is “dangerous to your health and the economy” and “the elderly will bear the brunt”.

While I understand that this is an opinion piece, I am concerned for the possible implications these system changes could bring, particularly to vulnerable seniors. We’ve all heard the sound bytes in the news this past week – we know there are a wide range of opinions on the bill and whether it will help or hurt the struggling economy and the American people. I imagine the 1000+ page document, formally called the American Recovery and Reinvestment Act of 2009, is full of items that probably needed further scrutiny. In my opinion, seniors are already marginalized in our society, so I am curious to see what the outcome of these provisions will be. I hope for the best, but in the meantime, I hope that senior-focused advocacy and service organizations will be prepared to carry the load in times of need.

What’s your read on the stimulus package as it pertains to seniors?  Share your thoughts here.

- Michelle Seitzer