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LCAO Stimulus Letter

(Alliance for Retired Americans)

Dear Senators Baucus and Grassley:

The Leadership Council of Aging Organizations (LCAO) is a coalition of 56 national non-profit organizations concerned with the well-being of America’s older population and committed to representing their interests in the policy-making arena.

The undersigned members of the LCAO are concerned that the plan for a stimulus package currently under consideration by Congress does not include three significant provisions.  Stimulus payments are only being considered for those who have “taxable income” or “earned income”.  This stipulation would exclude many older Americans who have neither “taxable income” nor “earned income”.  The proposed stimulus package also does not include additional funding for Medicaid.  Without additional Medicaid funding, states may cut Medicaid services and adversely impact those who rely on these services for their health care. Additional funding for food stamps is not included in the package.

Older Americans paid taxes during their working careers and now are attempting to meet their living expenses through Social Security/pensions /savings.  Many do not pay income taxes.  They are impacted by higher prices—for food, medications, fuel, energy and other living expenses at least to the same degree as citizens who are currently working.  Older Americans spend a greater percentage of their incomes on health care than the working population—these costs continue to rise at a rate exceeding the rate for other segments of the economy.  Residents of long term care facilities and their caregivers would return any stimulus payments received to the economy by paying for the costs of the long term care.  Those who meet their living expenses through benefits accrued by their previous labors generating “taxable income” and “earned income” should receive “stimulus payments”.

“Stimulus payments” sent to older Americans will probably be spent sooner than “stimulus payments” issued to those currently employed.  Thus, the desired impact of the “stimulus payments” will be felt sooner if older Americans who do not pay income taxes receive these payments.

Medicaid funding is a challenge for all states.  Scheduled Medicaid changes will result in cuts of $3.5 billion in FY 2008-2009 and $12 billion over the next five years.  Many states are challenged to meet their Medicaid costs.  The proposed stimulus package will further exacerbate the already tough fiscal condition of the states by reducing their share of state revenues which are tied to the federal income taxes.  States may consider reducing Medicaid services due to these cuts.  In the 2003 stimulus package, the Federal Medical Assistance Percentage (FMAP) was temporarily increased and states were barred from cutting Medicaid services.  Comparable provisions should be included in the 2008 stimulus package to ensure that Medicaid services remain available for those without other means of obtaining   health services.
   
Twenty seven million Americans, including many older Americans, receive food stamps.  The Congressional Budget Office has indicated that a temporary increase in food stamp benefits would be highly cost-effective.  Additional funding for food stamps would immediately be returned to the economy—stimulating both the agricultural and the retail segments of the economy.
 
We request that retired Americans be included in any “stimulus package”.  We also request that the FMAP be temporarily increased as part of the “stimulus package”.  A temporary increase in the food stamp program should also be considered.
 
Sincerely,

AFL-CIO
AFSCME Retirees
Alliance for Retired Americans
American Association for International Aging
American Federation of Teachers Program Retirement & Retirees
American Postal Workers Union Retirees Department
Association for Gerontology and Human Development in Historically Black Colleges and Universities
Association of United Jewish Aging Services of North AmericaB’nai B’rith International
Easter SealsFamilies USA
National Academy of Elder Law Attorneys
National Active and Retired Federal Employees Association
National Adult Day Services Association National Association for Homecare and Hospice
National Association of Area Agencies on Aging
National Association of Nutrition and Aging Services Programs
National Association of Professional Geriatric ManagersNational Association of Social Workers
National Association of State Long-Term Care Ombudsman Programs
National Committee to Preserve Social Security and Medicare
National Council on Aging
National Senior Corps Association
United Jewish Communities

Related Documents

• LCAO Stimulus Letter
  LCAO Stimulus Letter