Aging and Social Welfare Policy

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Aging and Social Welfare Policy

• Segal Brzuzy 8

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What About Aging?

• Is part of the human condition
• Historically, care for the elderly was handled
  within the family
• Life expectancy has risen gradually over the
  years
• In 1995, more than 35 million people were 65 or
  older

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History of Social Welfare for the Aging

• During 19th century, most people worked (concept
  of retirement is relatively new)
• Idea of leaving workforce was formalized with
  policies and programs
• Great Depression hit older people hard
• Rise in the political movement for the elderly

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Social Welfare Policies

• Social Security Act of 1935
• Old-Age, Survivors, and Disability Insurance
  program (commonly referred to as social security)
• Medicare, enacted 30 years after the Social
  Security Act
• Older Americans Act (1965), furthered policy
  gains made by older adults

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Social Welfare Policies (cont..)

• OAA provided financial support for programs and
  services for older adults
• Health Insurance for the Age and Disabled,
  included in the S.S. Act of 1965 (Title XVIII)

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What Is Social Security?

• The Social Security Act created financial
  protection for workers as they age
• Initially provided for old-age benefits for
  retired workers
• In 1939, expanded to cover retired worker,
  his/her survivors, and dependents

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How the Program Works

• While people are young, they pay into the system
• Amount paid in is a set percent of income (7.65
  as of 1996) for social security and Medicare
  together
• Employer matches both and pays it directly to the
  federal government
• Is a regressive tax

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• If self employed, responsible for paying for both
  
• Social Security Administration keeps track of
  contributions
• Majority of women receive benefits as wives or
  survivors of eligible workers

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Importance of Social Security?

• Keeps many older adults financially out of
  poverty
• Elderly below poverty line, 68 of their total
  income comes from OASDI benefits
• Decrease in poverty is related to the programs
  effectiveness
• Universality of the program allows any older
  adult (rich or poor) to receive benefits

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Future of Social Security

• Permanent expectation of Americans of all income
  levels
• Baby boomers will expand the number of retirees
• Many more people are living longer
• Policy choices (cutting benefits, limiting
  eligibility, raising taxes, or combination of all
  three)

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Health Care for the Elderly

• Medicare provides coverage for many routine
  medical procedures and very specialized care
• Cost has been a major policy problem
• Covers large potion of health costs, but does not
  include all medical expenses
• One costly concern is long-term care
• Medicare covers nursing home care for a period up
  to only 100 days

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• Caring for people as they age is costly for
  individuals and the government
• Reliance on Medicare and Medicaid is costly to
  taxpayers
• Private insurance, personal savings, and family
  members not able to fully support the need
• Alternative solutions to long-term care is needed

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Older Americans Act of 1965 (OAA)

• 1961, first White House Conference on Aging was
  held
• OAA subsidized social services and the
  development of Area Agencies on Aging (AAA) to
  coordinate provisions of the Act
• Funds support transportation, senior centers,
  recreation, nutrition, and health-related
  programs (I.e., immunizations)

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OAA (cont..)

• Create a governmental agent to coordinate the
  various existing services
• Create new ways to better serve older adults
• Programs coordinated through provisions (group
  meals, Meals on Wheels, home-based care,
  employment services, adult day care for elderly
  with impairments

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• Services are for people 60 years or older
• Services tend to be directed to those in need
• Increase in aging population will challenge
  resources of OAAs programs and demand social
  welfare policy changes

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Final Thoughts

• Emphasis on programs and services for older
  adults has gained strength
• Strong political power and influence of senior
  citizens
• Government support has freed younger generation
  from responsibility
• Policy-makers need to be more attentive to the
  wishes of the aged