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Friday Alert June 1, 2007
Alliance for Retired Americans
888 16th Street, N.W. - Washington DC, 20006 - (202)
974-8222 - www.retiredamericans.or
Long Term Care Under Congressional
Scrutiny
According to The New York
Times, a Congressional committee last week began looking
into business practices in the long-term care insurance
industry. The House Committee on Energy and Commerce has
asked Conseco and the Penn Treaty American Corporation, two of
the nation's largest sellers of long-term care insurance, to
produce documents showing how the companies market long-term
care policies and handle policyholder claims. The
requests, which are expected to be a precursor to hearings by
the committee, come as the Government Accountability Office
prepares to begin a separate investigation. At least five
senators have asked the agency to open an inquiry. In
March, The New York Times reported that some long-term
care insurance companies had developed procedures that made it
difficult, if not impossible, for policyholders to get
paid. "We have two companies that seem to be engaging in
questionable practices, and we have every reason to think we
will turn up other companies engaged in questionable practices,"
said Rep. John Dingell (D-MI), chairman of the
House Committee on Energy and Commerce. During the 1990s,
long-term care insurance was one of the industry's
fastest-growing products. Companies like Conseco and Penn
Treaty aggressively solicited clients who were not in the best
health at rates far below that of their competitors to win more
business, according to former agents. In this decade,
cracks in the business began appearing when policyholders in
nursing homes started living longer than expected and the costs
of treating people with Alzheimer's, Parkinson's and diabetes
ballooned. According to court documents, Conseco, Penn
Treaty and other insurers developed policies that rejected
claims for reasons including policyholders' failure to submit
unimportant paperwork. "I am glad to see Congress looking
into these issues," said George J. Kourpias,
President of the Alliance. "As Sen. Barbara
Boxer (D-CA) said recently during a hearing, 'Elections
have consequences.'"
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Older Employees Find it Harder to Return
to Work Force Once They Retire
Many workers
are choosing to postpone retirement, while those who stop work
and then change their minds often have trouble finding jobs,
conclude studies published recently in The New York
Times and the LA Times. Reversing a
decades-long trend of declining retirement ages, Americans now
typically stop work at age 62, compared to age 60 in 1997.
More than 1 in 4 baby boomers plan never to retire, while 80
percent expect to work through at least part of their
retirement. With fewer jobs requiring physical labor, many
also choose to continue working to avoid boredom. Some
companies value these employees and are encouraging them to
stay, offering such incentives as part-time work and phased-in
retirement. But other companies are not as receptive to
older workers - at times excluding age when considering
diversity. Job seekers over age 55 now spend an average of
22 weeks looking for work, 6 weeks longer than their younger
counterparts. Those under 50 are also 40 percent more
likely to be called for job interviews. The major
exception is the health care industry, where hospitals and other
employers face labor shortages and routinely recruit experienced
employees. "There is a supply of experienced, committed,
and highly-qualified job candidates, who would be a huge asset
if given the opportunity to interview," said Ruben
Burks, Secretary-Treasurer of the Alliance.
Kaiser Permanente Announces $450,000
Grant to National Labor College
Oakland, CA,
headquartered Kaiser Permanente, America's largest integrated
health plan, and the Coalition of Kaiser Permanente Unions, are
jointly donating $450,000 to the National Labor College (NLC) in
Silver Spring, Maryland to fund the Kaiser Permanente Healthcare
Institute, a program dedicated to educating labor leaders and
union members on health care issues. The creation of the
Kaiser Permanente Healthcare Institute, in collaboration with
the NLC, is designed to promote understanding of the challenges
facing the current health care system and to provide labor
leaders and students with the knowledge and skills to drive the
effort making affordable, quality health care available to every
American. In conjunction with the course work, the Kaiser
Permanente Healthcare Institute and the NLC will sponsor
conferences on key issues in health care, drawing in expert
speakers beginning in October. The NLC is the only
accredited college in the world exclusively dedicated to
educating union members, leaders, activists and staff.
Pennsylvania Alliance Holds
Convention
The Pennsylvania State Alliance
held its convention Tuesday and Wednesday, with attendees
hearing from speakers including Alliance Executive Director
Edward F. Coyle. Members learned about
public policy issues, discussed the importance of educating
fellow seniors, and attended workshops on improving their skills
in communicating with peers, elected officials, and media.
A "Day of Celebration" honored the efforts and successes of the
Older Americans Act (OAA), but also highlighted the
legislation's growing financial needs. A critical vehicle
delivering human, social, and nutritional services for older
persons, the OAA faces a $109 million cut in the President's
fiscal year 2008 budget. Attendees signed a letter to U.S.
Senator Arlen Specter (R-PA) calling for at
least a ten percent increase in federal funding for the
Act. "May is Older Americans Month, a time to honor the
Americans that remain such a vibrant part of our community,"
said Pennsylvania Alliance President Jean
Friday. "But it is also a time to reflect on what
we can - and must - improve." A lifetime
achievement award was presented to Marie
Malagreca for her strong leadership, passion and
dedication to the senior and labor movements.
Did You
Know?
According to Congressional
Quarterly, nearly 70 percent of those turning 65 this year
will eventually require long-term care.
Become part of a progressive grassroots movement!
Join the Alliance: www.retiredamericans.org/join
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Alliance for Retired Americans 815 16th
St, NW Washington, DC 20006 www.retiredamericans.org
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