Category Archives for Consumer Issues

The Best of…Baby Boomers Tighten Belts to Pay for Rising Food Costs, Says AARP

Published August 4, 2008, All Pawtucket All the Times    

         A soft economy, combined with stagnate wage increases and skyrocketing fuel prices, are hitting aging baby boomers right in their wallets. On top of this they must also juggle their household budgets to pay for rising food costs, too, impacted by egg, dairy and poultry price increases.  According to a June 2008 AARP Bulletin on Rising Food Costs, older consumers are taking the necessary steps to rein in their rising household food expenses.   

            The AARP telephone survey findings, taken from a nationally represented sample of 1,009 people ages 45 and older, revealed that over fifty percent responding to the survey have taken the necessary steps to cope with rising food prices.  Slightly half of the respondents believe that there is a global food shortage.  However, less than half of those surveyed think that certain food items may need to be rationed within the next year.  Most of those surveyed blame the government directly for food cost increases 

            The June telephone survey found that almost half of those polled (49%) believe that food prices have caused a hardship on their budget.  Consumers, ages 45 to 49 (69%) were more like than those age 50 and over (49%) to report that they have started cutting back on summer entertaining to cope with rising food prices.  In addition, almost four out of five respondents (78%) ages 45 to 49 said that they have started eating out less, compared to over half of those 50 years old and over (54%).

Boomers Dining Out Less

            Just over half of those polled (53%) do not think it is likely that certain food items may need to be rationed within the next year.  Four out of five (81%) reported that they have not started eating fewer meals in the past six months.  However, over half have started using discount coupons at grocery stores (57%) and started buying generic grocery brand items (56%), and one in five (19%) have started eating fewer meals.

            Meanwhile, the majority of respondents (71%) think that the government is responsible for rising food prices.  Two out of five respondents (44%) think that national disasters play a role in rising food costs.  Respondents were less likely to think that restaurants (11%), farmers (16%), grocery stores (28%), or food processing plants L(29%) were responsible for these rising costs. 

            Slightly over half of the respondents (52%) think that there is a global food shortage. Respondents ages 50 plus (55%) are more likely than those ages 49 to 49 (38%) to think there is a global food shortage.  However, those age 50 and over (39%) are less likely than those ages 45 to 49 (51%) to think that certain food items may need to be rationed within the next year.

In Rhode Island…

            Like those polled by AARP, Rhode Islanders are also seeking ways to lower their household expenses, by eating out less.  As reported by the Providence Journal on July 22, 2008 (Down Turn Eats into Restaurant Sales), the state’s Division of Taxation has reported a drop of 9 percent in the state’s meals and beverage tax, when compared with the same time period a year ago. Providence,Warwick,Newport and Cranstonhad a decrease of 10.5 percent, 2.9 percent, 8.0 percent and 13.7 percent, respectively. Pawtucket’s numbers decreased by 5.3 percent.

             Lay offs, and food and fuel increases are bringing more families into the state’s food stamp program.  A March 31 article in The New York Times (As Jobs Vanish and Prices Rise, Food Stamp use Nears Record) reported that Rhode Island saw an increase of 18 percent in the state’s food stamp recipients over the last two ears, to more than 84,000 as of February, or about 8.4 percent of the population.

             “Clearly the economy is hurting both [Rhode Island’s] poor and middle class,” says Kathleen Connell, AARP State Director. “People are just tightening their belts and many are struggling to spend their money on just the essentials to make ends meet,” she says.

             Connell says that when people go out to eat they may now choose less costly items off the menu, or even cut down on the number of trips to their favorite local restaurant.  Grocery shopping lists may well include cheaper food items, too, she says.  “It remains to be seen what the winter will bring to baby boomers struggling to pay rising food costs with the expected National Grid utility increases.”

             Herb Weiss is a Pawtucket-based writer who covers aging, medical and health care issues. This article appeared in the August 4, 2008 issue of All Pawtucket All The Time.  He can be reached at hweissri@aol.com.

Better Business Bureau Resource Book Offers Seniors Valuable Tips

Published in Pawtucket Times on March 29, 2004

Everyone has probably heard the old adage…If you don’t pay for it, you won’t appreciate it.”

Maybe this is true in some situations, but this is not the case should you pick up a “free” issue of the Rhode Island Senior Citizens Edition 2004, published by the Better Business Bureau Book (BBB) series.

The 53-page resource book is free and available at local grocery stores and retail sites throughout the state. It was written to address special needs of seniors by using reliable information.

Seniors and caregivers can become savvy shoppers by simply skimming through this annually updated publication when they seek out products and services.

Do you need to modify your home to adapt it to promote greater independence or to prevent falls?  BBB’s 2004 senior edition gives you sound advice when you begin your home fixups.

When shopping around, make sure the contractor you will use is both licensed and bonded.  Always get a written down payment and only make it a small down payment.

Your final payment should be made when the contractor completes the project to your satisfaction. Always contract Rhode Island’s Better Business Bureau (785-1212) for a reference.

While many may consider BBB’s useful recommendations as common-sense advice, sadly some seniors don’t follow the advice and become victims to unscrupulous contractors.

BBB’s 2004 senior edition is jam-packed with useful information, from outlining senior housing choices to tips on choosing a nursing home, medical insurance and long-term care insurance, eye care and dental prosthetics.

Do you need help with managing your assets or spending within your means?  Are you seeking a lawyer to write your will , creating a trust, durable power of attorney or advance directives?  Have you considered pre-planning your funeral. Yes. BBB’s senior 2004 edition gives timely suggestions on hiring financial planners, lawyers, or even choosing a funeral home.

About 30 percent of the nation’s seniors and 50 percent of those over 85 suffer from hearing impairment. Buying a hearing aid can be a frustrating, intimidating experience for many seniors.  BBB’s 2004 senior edition walks seniors through the process of purchasing a hearing aid.

The publication gives an easy-to-understand explanation of the types of hearing losses and where to turn to for treatment – an otologist, audiologist or a hearing aid retailor. Seniors can turn to page 27 to learn the  specifics about hearing aid products, what to expect during the hearing examination, what to look for in contracts and warranties and service and repair issues.

BBB’s 2004 senior edition warns that Rhode Island is now considered a “target state” for scams because of the state’s high percentage of seniors – 16 percent of the Ocean State’s population is over age 55. The resource book warns about seniors about Canadian telemarketing scams, thieves posing as utility workers or inspectors or Nigerian “fund transfer” scams and how to avoid them.

Finally, seniors are taught how to successfully complain via writing effective complaint letters.  Effective complaining begins by sending a letter addressed to the person in charge of the company, not the consumer protection agency. Always allow the company an opportunity to fix the problem.

When corresponding be courteous, describe the problem clearly and be reasonable when requesting your solution, and enclose “copies” of all appropriate documents. Most importantly, always give the company a reasonable amount of time to respond to your complaint. These are not bad suggestions for seniors or caregivers to follow when attempting to resolve a consumer issue.

In his forward to BBB’s 2004 senior edition, A. Michael Marino, BBB’s president, calls on the reader to keep this handy resource book in a very convenient location for easy reference.  You’ll be able to truly appreciate the sound advice and information this free BBB publication offers, despite the old adage about appreciating only the things we pay for.

Call 785-1212 for a copy of BBB’s senior edition, for pickup locations or for detailed information on how seniors can access BBB services.

Aging Baby Boomers Woefully Unknowledgeable About Services

Published in Pawtucket Times on December 31, 2001

Are you a savvy shopper for services that you might one day need to purchase?

Many Americans are especially savvy when they purchase cars, electronic equipment or clothing.  But most are not when it comes to their knowledge of purchasing needed long-term care services, says a report recently released by AARP.

More than half (60 percent) of aging baby boomers age 45 plus say they are at least “somewhat familiar” with long-term care services currently available. However, they are woefully uninformed about the costs of, and funding sources for, long-term care services.

Yet with the graying of America’s population, the need for these services is expected to increase in the upcoming years. According to the 2000 U.S. Census Bureau projections, today’s 65 or older population numbers are expected to double to about 70 million in 2030, and the 85 and older population will also nearly double to about 8.5 million.  Those 85 years and older will be in the greatest need for nursing facility care.

“With the onset of the aging demographic revolution, essential that the general public not only learn about the long-term care options but understand their costs, and begin planning for their future care requirements,” said AARP CEO Bill Novelli. “Unfortunately, most of us pay little attention to the cost of such care until we or our loved ones needed it.  AARP sees  our role as informing and assisting people to make good choices.”

The AARP telephone survey asked a random sample of 1,800 Americans ages 45 and older questions  designed to measure their knowledge and understanding of the continuum of long-term care services, ranging from in-home care, assisted living to nursing home care.  In addition, to the national survey, five state-specific surveys were conducted with a random sample of 400 people age 45 and over in California, Florida, New Mexico, Washington and Wisconsin.

The survey findings suggested that aging baby boomers and seniors are generally not familiar or knowledgeable about the costs of long-term care services.  Only 15 percent could identify the cost of nursing  home care within plus or minus 20 percent of the national average of cost (about $ 4,654 per month).  Even 24 percent of those participating in the survey admitted that they did not even know the cost. And that’s not all – 51 percent estimated the cost too l ow.  So much for those savvy shoppers.

As for assisted-living facilities, one in four (27 percent) were able to come within a plus or minus 20 percent of the estimated median cost of care in an assisted-living facility while 38 percent said they did not know the national estimated median cost for assisted living per month, ranging from $ 2,000 and 2,500.

Meanwhile, survey participants continued to reveal their lack of knowledge by being generally unaware of how much an in-home visit from a skilled  nurse or aide costs.  The average Medicare reimbursement is $ 109 per a skilled nurse visit and $ 64 for a home visit by an aide.  The survey findings reported that they gave a wide range of answers, with no real consensus.  Thirty three percent even admitted they did not know the cost.

So, what about the aging baby boomers knowledge of long-term care insurance, one viable option to pay for the cost of long-term care services? About 31 percent said they have insurance that covers the cost of long-term care, when they probably didn’t.  Maybe it’s time for people to read the very small print in their insurance policies.  The Washington, D.C.-based Health Insurance Association of America estimates that only about 6 percent of Americas purchased such insurance.

Additionally, the survey respondents who said that they had insurance coverage for long-term care services were more likely to say they feel better prepared to meet the financial challenges of paying for care than those who say they do not have coverage (7 percent versus 39 percent).  This finding suggests that people who say that they long term care coverage when they do not may have a false sense of financial preparedness.

According to the new study, there is also a discrepancy between what people think Medicare and Medigap cover and what they actually cover.  More than half (55 percent), including those who say they are “very familiar” with long term care (58 percent), believe Medicare covers long-term nursing home stays.  And nearly a quarter say they would rely on Medicare to pay for such stays.  This is not the case.  Medicare does not cover long-term care nursing home stays.

The survey noted that 41 percent thought Medicare also covered assisted living care and more than 34 percent know whether it does or does not.  Medicare does not pay for assisted living.  And 57 percent correctly said that Medicare covers the cost of in-home visits from a skilled nurse. However, many respondents did not understand the difference between a home visit from a skilled nurse and a home visit by a home health aide.

More than half (52 percent) thought Medicare covers aide visits. In fact, Medicare covers only home health aide services for care that is medically necessary, not custodial care.

Kathleen S. Connell, AARP State Director, notes that this research study highlights the big gap between consumers understanding of long-term care services and its associated costs.  She adds that the findings reveal a great deal of confusion as to what long term care services are covered by Medicare and Medicaid.

“Aging baby boomers are now facing decisions regarding the purchase of long-term care services for their older parents. They will also be forced to deal with their need for services as they age and as longevity increases,” Connell says. “Consumers need to be come better informed about what Medicare and Medicaid pays for available long term care options for services that are actual costs of care.  They need to investigate different long term care insurance options, too,” she urges.

In Rhode Island there is a general recognition in agencies assisting seniors of the need for educating consumers and putting information into the hands of people who need it, Connell notes, adding that information specialists are available in local senior centers to assist in this effort.

Don’t wait until a sudden health crisis forces you to shop around for long-term care services.  Start today Become a savvy shopper by increasing your knowledge and understanding of different long-term care service options and  their associated costs.  Learn more about government financing programs, specifically Medicare and Medicaid, and private senior financing with long-term care insurance and Medigap policies.