Policy Update

California Representative Calls for Repeal of Medicare Law

U.S. Representative Dennis Cardoza (D-Calif.) is calling on Congress to repeal the 2003 Medicare law and draft new legislation to replace it. Cardoza, who voted against the 2003 legislation, is calling for an extension to the deadline to enroll in a Medicare prescription drug plan without a penalty—from May 15 to the end of the year. He also said that the "doughnut hole"—the break in drug coverage between about $2,500 and $5,000 in annual expenses—should be eliminated. Cardoza said he would deliver petitions to President Bush's administration. The petitions call for immediate modifications to the drug benefit. Read More

Medicaid Law Could Jeopardize Assets of Elderly

Since President Bush signed the Deficit Reduction Act February 10, 2006, estate planners are advising older Americans to understand changes in the Medicaid program and plan early. Medicaid is a federal and state program that provides medical and nursing home care for low-income people.

Under new terms, the government will review financial records and transactions for the previous five years and will refuse to pay for medical and nursing home care for an impoverished person for a period of time if gifts were made during the five-year window. Financial transactions and asset transfers completed five years before applying for Medicaid are protected. Read More

Policy Brief Shows Increased Numbers of Family Caregivers

A new policy brief from the AARP Public Policy Institute summarizes major findings of the issue paper, "Staying the Course: Trends in Family Caregiving," by Brenda C. Spillman and Kirsten J. Black of The Urban Institute. The paper examines trends in formal (paid) and informal (unpaid) care for older persons.

Key findings show an increase in the number of spouses and children providing care to an older person with disabilities, while the use of any formal care by older persons with disabilities who received care in the community declined. The proportion relying solely on family care increased dramatically. Family caregivers continue to provide the vast majority of the long-term care received by older persons with disabilities in the U.S. More than 90 percent of care recipients received informal care (informal care only or a combination of informal and formal care) in 1999 (91.5 percent) and in 1994 (93.2 percent).

The policy brief suggests that the increased burden on informal caregivers indicates the need for policies such as workplace accommodations and more liberal family leave, as well as direct supports for caregivers, such as respite care and tax credits, to reduce both stress and financial strains. Read More

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