|
||||||||
Seniors Born In Notch Most Likely to be Poor Among people living in poverty over the age of 64, a significant portion--about 46%--are age 75 and older according to a recent report from the U.S. Census Bureau. Could the reason be that many of those living in poverty--seniors ages 75 through 84--are Notch Babies? You remember Notch Babies. They`re the generation that was asked to `save Social Security` in 1977 by receiving lower benefits for the rest of their lives. A second troubling statistic among the 1.7 million Americans over the age of 74 that live in poverty, 1.3 million are women. Those numbers are in large part because women have longer life expectancies than men. Most of these women receive widow`s benefits, but have little in the way of savings. If their husband was a Notch Baby, their widow`s benefit is likely to be lower than that of other widows` whose husbands were not Notch Babies. This year the youngest Notch Babies, those born in 1926, turn 75. Not only is this group of seniors more likely to be poor, they are more likely to see the largest health care cost increases. According to a study by Express Scripts, the nation`s largest independent pharmacy benefit manager, the average cost for a prescription rose 17.4% in 1999, but rose 18% for women 70 to 79, 20% for women 80 and older. This trend is likely to worsen in 2001. According to recent estimates average drug costs are expected to rise by as much as 20 to 25%! Those over age 75 are also feeling the pain of the biggest increases in health care premiums. Not only has the cost of health insurance premiums gone up 13 to 30% during 2000, but as Notch Babies grow older, they move into the age groups that have higher premiums than younger retirees. Because of these and other big cost increases, including big jumps in gas and heating oil, we fear many Notch Babies may be forced to skip meals or stop taking needed medicine. Passage of Notch Reform has become critical to protect some of our nation`s most vulnerable seniors. We urge you to write to your Representative in the House telling him or her how being a Notch Baby affects you. Ask your member to co-sponsor the critically needed `Notch Fairness Act of 2001.` This article first appeared in Volume 6, Issue 4 of "The Social Security and Medicare Advisor" newsletter (March/2001). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
|
|
||||||||
