AARP Helps Seniors Seek Out Deals for Checking Accounts

Published in the Pawtucket Times on January 7, 2002

For most retirees living on a fixed income, putting the brakes on rising out-of-pocket costs can provide the income to purchase needed prescription drugs pay for rent or even buy food.

A new AARP report provides just the right ammunition to seniors to ditch their high bank fees for low-fee checking accounts.

According to the Federal Reserve Bank, checking account fees pull in about $ 55 billion for the banking industry. That’s quite a hefty profit.

Average fees charged for cashing a check can range from 2 percent to 3 percent of the face value amount of a check. For low-to-moderate-income seniors, the checking account fees can quickly add up.

According to AARP Rhode Island State Director Kathleen S. Connell, writing checks to pay bill has become a necessity of life.

“Low-and moderate-income consumers should be informed about basic banking services available to avoid paying high fees to cash checks and get money orders,” she said.

AARP’s new educational initiative, “Score a Home Run and Win with Lower Bank Fees,” is geared to assisting older consumers in identifying banks that provide free or low-cost checking accounts, states Connell.

As part of this initiative, the senior advocacy group is offering a new bank survey fact sheet called “Choosing a Checking Account” that makes it very easy to compare banking information, she says.

The AARP fact sheet identifies financial institutions offering free, senior discount, regular and interest-yielding accounts, as well as a new type of account called an “Electronic Transfer Account” (ETA). The five financial institutions surveyed include BankRi, Citizens Bank, First Bank and Trust, Fleet Bank and RI State Employees Credit Union.

Some seniors may find shopping for a checking account as confusing as walking through a tangled maze. Some banks and credit unions offer free checking to persons of any age. But other financial institutions will provide free checking only when you use direct deposit, such as having your payroll check, Social Security or other benefit check directory deposited into your account.

Many local banks offer special free or low-cost checking “senior discount accounts.” Since not all banks advertise their discounts, AARP recommends that seniors should ask their banks whether such accounts are available.

Additionally, the newly available AARP fact sheet tells seniors they can avoid costly check cashing fees by taking advantage of an ETA. This low-fee account allows a person to get their federal government checks, like Social Security, by direct deposit for a monthly fee of $ 3 or less. An ETA, unlike most checking accounts, does not have a check-writing feature.

“I recognize that independence is one of seniors most treasured assets,” Rhode Island General Treasurer Paul J. Tavares told All About Seniors,” noting that his office works closely with AARP to sponsor seminars for seniors called “Saving and Investing Over 55.” The AARP fact sheet will be distributed at these seminars.

“I have always encouraged AARP to better educate their membership on good savings practices. Initiatives like this help educate Rhode Island consumers, and the more knowledgeable shopper become the better consumer,” Tavares said.

Take control of your finances by exploring your checking account options. Free copies of AARP’s “Choosing a Checking Account in Providence,” Stock Number D17496 can be obtained by calling 1-800-424-3410 or writing AARP Fulfillment 601 E Street, NW, Washington, D.C. 20049. “La Busqueda del Tesoro” or “The Treasurer Hunt” from AARP, Fulfillment Stock Number D17465. The historieta is targeted to Hispanic consumers who do not have checking accounts.

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.

The Best of…Call the Samaritans for a Shoulder to Lean On

Published on December 24, 2001, Pawtucket Times

Chestnuts roasting on the fire. Green wreaths with red ribbons. Soothing Christmas music coming from speakers in shopping malls. Houses decorated with long strands of brightly colored lights. Decorated evergreen trees.

Got the Christmas spirit? Many do, but many don’t, especially if they are seniors.

With Christmas tomorrow, not everyone is feeling the holiday spirit. The holidays may be a very difficult time for seniors, particularly the elderly who have lost spouses and friends, have painful chronic illnesses or feel isolated or powerless, says Cynthia Barry, M.S.W, executive director of the Mental Health Association of Rhode Island. At this time “some may feel depressed and even suicidal.”

Even drinking during the holidays can put seniors at a higher risk of experiencing depression and thinking about suicide, Barry adds.

But the stigma of mental illness will keep older persons from seeking out needed treatment for their depression or suicidal thoughts, Barry says. Those who feel that they have a problem with depression should visit their local mental health care, neighborhood health canter, the family physician or even private practitioners re commended by their health plan, she says.

Carolyn Pellegrino, deputy director of Self Help, Inc., a nonprofit community action agency in the East Bay that provides senior case management to all upper East Bay communities and both Pawtucket and Central Falls, , notes that 60 percent of her older clients usually involve persons who just worry to those experiencing severe clinical depression.

“There’s a lot of depression out there,” Pellegrino says, adding that today’s seniors, who grew up in a different era, were told not to dal with their feelings of depression, “just get on with your life.”

Although depression, like heart diseased, is an illness, seniors will get treated for their heart disease, but not their depression, Pellegrino says. Oftentimes, a combination of medication and therapy can do wonders about a person’s depression, she states.

A newly released Public Service Announcement (PSA) tells seniors to seek out another resource to fight the holiday blues. Last week, WHJJ and B101 played a PSA featuring well-know songwriter Bill Withers who, after singing a few lines of his popular song, “Lean on Me,” urges his radio listeners “feeling low with nowhere to turn to contact The Samaritans.”

Directed to the lonely, the depressed and suicidal, the PSA is intended to raise the awareness of the existence of The Samaritans of Rhode Island, a nonprofit program dedicated to reducing the occurrence of suicide by reaching out to the despairing and lonely.

Denise Panichas, serving as The Samaritans’ interim executive director states the communication-based program, established in Providence in 1979, teaches volunteers to effectively listen to people who are in crisis. Conversations are free, confidential, most important anonymous.

A rigorous training program teachers volunteers to feel and think without expressing personal judgements or opinions, Panichas says, noting that the listening technique, called “befriending,” calls for 90 percent listening and 10 percent talking.

Last year, more than 20,o00 Rhode Islanders called The Samaritans, Panichas said. The Samaritans, Panichas said. “It doesn’t matter what the problem is, be it depression, suicidal thoughts, seeking resources for mental health services in the community or being lonely and just needing to talk,” she said.

Panichas notes that The Samaritans also offers other needed resources to caregivers and older Rhode Islanders. “We do community education programs and also have our peer-to-peer Safe Place Support Group for those left behind by suicide.

For seniors who are looking for something to do with their time, the art of “befriending” is something that anybody can do. Becoming a compassionate listener to someone in need.

Herb Weiss is a Pawtucket-freelance writer who covers health care, aging and medical issues. He can be reached at hweissri@aol.com.