Letter to Congress on aid to older victims of Hurricane Katrina

This letter was sent to the U.S. House of Representatives and Senate
September 13 , 2005

Dear Senator/Representative:

As an organization whose mission is to advocate for the programs most relied upon by seniors, the National Committee to Preserve Social Security and Medicare would respectfully bring to your attention issues of particular relevance to older Americans as Congress acts to provide much-needed relief to the victims of Hurricane Katrina. On behalf of our 4.6 million members and supporters, I urge you to continue to be attentive to the unique needs of seniors as they recover from this traumatic event.

As Congress conducts its review of how the government and its various programs prepared for and responded to the disaster caused by Katrina, we believe it is important to consider, not only the programs that failed or need major modifications, but also to acknowledge the value and importance of those programs that fully and reliably fulfilled their missions. One shining example of such a program is Social Security. Although much has been made of Social Security's age in the debate over private accounts, the speed and flexibility shown by the Social Security Administration in the aftermath of Katrina provide graphic testimony to the relevance of Social Security in modern society that should not be overlooked.

Disasters tend to remind us that there is an important role for collective social insurance in a nation as great as ours, and that the consequences of allowing these shared risks to be borne by individuals can be catastrophic. It would be a tragic mistake to learn this lesson only after a program such as Social Security has been effectively dismantled.

In the course of your evaluation of programs that require adjusting in the aftermath of Katrina, we would like to bring three other issues specifically relating to seniors to your attention.

Medicare
Medicare is one of the few constants in an older person's life. While it is never advantageous to subject older individuals to unnecessary complexities or deadlines, there are certain limits that have been incorporated into the Medicare program in order to make it function. However, at this time when so many frail elderly are recovering from the displacement caused by Katrina, it would seem appropriate to adjust elements of the program to recognize the realities of the time. Our first suggestion in this area is for Congress to temporarily waive the late enrollment penalties in the Medicare Part B and Medicare Part D programs. Evacuated seniors cannot be expected to immediately enroll in Medicare Part B or Part D given the scope of Katrina's devastation. Waiving the late enrollment penalties will give seniors the necessary time to get their lives back and to think about their health care choices.

Our second suggestion relates to the new Medicare Part D drug benefit. While we continue to believe the Medicare Modernization Act needs basic improvements, the program's lock-in requirements seem particularly inappropriate in the current environment. The National Committee believes that seniors should be allowed to change drug plans whenever their circumstances change, such as when their drug plans alter their formularies or if they move between homes across state lines. However, we believe it is even more important that Hurricane Katrina evacuees be allowed to change drug plans whenever necessary, given they will be living in states all across our country for a number of months while their homes are rebuilt.

Medicaid
Medicaid is our nation's largest health care program, providing health insurance to over 50 million of the most medically and economically vulnerable in our society. We believe there are important changes that can be made to ensure that Medicaid can effectively meet the health care needs of Hurricane Katrina evacuees. For example, easing eligibility requirements so that evacuees who have lost their health care coverage can have immediate access to care strikes a responsible balance that addresses the needs of those who no longer have financial records.

A similar action was taken following September 11 th , 2001, when the federal government provided temporary Disaster Relief Medicaid to over 300,000 New Yorkers. Any efforts to simplify the Medicaid enrollment process and waive normal documentation requirements would also be helpful. Finally, authorizing the federal government to fully fund Medicaid at 100% Federal Medical Assistance Program (FMAP) would free up state governments to devote their resources to other needs such as the housing and education of evacuees.  

Other Programs Affecting Seniors
The Older Americans Act (OAA) authorizes an array of social services designed to benefit older persons, including: home delivered and congregate meals, transportation, homemaker services, home modifications, caregiver support, medication management, legal services and adult protective services, disease prevention and health promotion programs, and long-term care ombudsman services. These programs provide a lifeline for millions of seniors from all walks of life, making it possible for the elderly to remain in their homes rather than requiring more expensive nursing home care. For the past several years, federal funding for the OAA has failed to keep pace with inflation and has not adequately expanded to support the growing senior population. Senior citizens displaced by Hurricane Katrina will inevitably call upon OAA services in the months ahead, placing further burdens on already strained resources. The authorization of appropriations for the Older Americans Act expires at the end of 2005. Although we understand the staggering priorities that Congress will be facing in the coming months, we believe it is important that these important OAA programs be reauthorized and funding increased before the current authorization lapses.

Finally, State Health Insurance Assistance Programs (SHIPs) provide invaluable face-to-face counseling and assistance to millions of seniors across our country. SHIPs offer information, referrals, and counseling to Medicare beneficiaries on a wide range of health access and insurance matters. Traditionally, SHIPs are funded on a very minimal budget and use volunteers to help Medicare beneficiaries and their families understand their health care choices. Prior to Hurricane Katrina, SHIPs were already facing the Herculean task of educating seniors on the many choices surrounding Medicare Part D. They will now face an even larger task of helping displaced seniors with their health-related needs. Increasing funding for SHIPs would enable them to better meet the needs of these evacuees.

Over the months ahead, the federal government will play a critical role in providing vital social safety nets to those affected by Hurricane Katrina. The Congressional Budget Office has stated that it is not yet possible to provide a clear picture of how Hurricane Katrina will impact our federal budget and national economy. Given the uncertainties that lie ahead, we urge Congress to postpone elements of budget reconciliation that would reduce tax revenue or cut spending for entitlement programs. We believe now, more than ever, it would be unwise to restrict our ability to respond to the pressing needs of our nation.

Thank you for all your hard work and dedication to the needs of the American people in this time of crisis, and for your support of programs specifically benefiting our nation's seniors.

Cordially,

Barbara B. Kennelly

The National Committee is a nonprofit, nonpartisan organization that acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the board of directors and professional staff. The work of the National Committee is directed toward developing a secure retirement for all Americans.