Alexandria, VA (March 6, 2003)--"Notch Babies" may be among those hit hardest by state Medicaid cuts, warns a national seniors' organization. Seniors born from 1917 through 1926, known as "Notch Babies," receive lower Social Security benefits than other seniors who have similar work and earnings records. "Notch Babies who rely entirely on Social Security are living at or below poverty level," says George Smith, Chairman of TREA Senior Citizens League (TSCL).
Says Smith, "double-digit health care cost increases and low Cost-of-Living Adjustments (COLAs) are likely to be pushing record numbers of Notch Babies who are now ages 77 to 86 onto Medicaid. An on-going study for TSCL has found, for example, that even a Notch Baby who retired with an average benefit of $460 in 1984 receives only $807 per month today.(1) That's just $59 per month above the federal poverty level in the 48 contiguous states and below poverty in Alaska and Hawaii,"(2) Smith notes.
Indeed, in recent years Medicaid rolls have expanded rapidly, with spending growing about 9%, per year.(3) "At the same time more seniors and Notch Babies have been forced onto the Medicaid rolls and the safety net is shrinking," Smith says. Recent growth in Medicaid is one of the largest causes of historically high deficits in states around the country. Most states have laws that require a balanced budget and forbid deficits. Many states have begun making cuts to Medicaid programs.(4)
President Bush proposed an overhaul to Medicaid that would give states broad new powers to reduce or eliminate benefits and thus reduce costs. The initial proposal provided the financial incentive of higher funding over the next 7 years, but it failed to get backing from governors, in part because it cut funding by the same amount over the following three years. A task force of state governors is now working with Congress to draft a plan to change Medicaid.
Creating a Medicare prescription drug benefit would be a way that the federal government could quickly help state Medicaid programs, while preventing benefit cuts for vulnerable seniors like Notch Babies, says Smith. Prescription drug costs currently account for about 6% of state Medicaid expenses. "Seniors should write to their Members of Congress and state Governors urging them to enact a Medicare prescription drug benefit, and to ensure a strong Medicaid safety net for our nation's poorest and most vulnerable seniors," Smith declares.
TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military, and other retirement benefits. TSCL members participate in a number of grassroots lobbying and public education campaigns designed to try to ensure governmental bodies, including the Social Security Administration and the Centers for Medicare and Medicaid Services, live up to their commitments. For more free information on this issue and our organization, please contact TREA Senior Citizens League, Department SF30301, 909 N. Washington St., Suite 300, Alexandria, VA 22314, or visit our website at: http://www.tscl.org.
(1) Johnson, Mary, "2002 CPI-E Study: Retiree With Average Monthly Benefit in 1984", October 21, 2002.
(2) Department of Health and Human Services "Annual update of the HHS Poverty Guidelines", February 7, 2003.
(3) Pear, Robert, "Medicaid Proposal Would Give States More Say on Costs", New York Times, February 1, 2003.
(4) Pear, Robert, "Governors, Hurting Financially, Ask Washington for Assistance", New York Times, February 23, 2003.
March 2003
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