Study takes look at income inequity of Black and Hispanics’ “Forgotten Middle”

Published in RINewsToday on March 18, 2024

Millions of Black and Hispanic middle-income older adults will lack the financial resources to pay for senior housing and health care expenses as they age, warns a new report released by  NORC at the University of Chicago, commissioned by the Long-Beach, California-based SCAN Foundation, an independent public charity dedicated to creating a society where older adults can access health and supportive services of their choosing to meet their needs.

The “Forgotten Middle” study’s analysis, a third follow-up to its landmark 2019 Forgotten Middle Study, shows the number of middle-income seniors of color will increase from 12% in 2020 to 25% by 2035, yet this population will be least likely to afford senior housing and care when compared to the middle-income seniors as a whole.  

Widening income gap creates challenges

The study, released last month, points to widening gaps among Black and Hispanic middle-income seniors around home ownership, home equity, financial assets, and marriage rates compared to their white peers. This gap results in fewer financial resources to afford senior housing and care. The researchers say that case studies and an analysis of existing literature highlight the challenges middle-income older adults may face in rural areas.

“Wealth is not distributed evenly across the Forgotten Middle. Now we know that Black and Hispanic older adults are the worst off,” said Sarah Rayel, senior director in NORC’s Health Care Strategy department in a Feb. 15, 2024 statement announcing the study’s findings. “Black and Hispanic middle-income older adults have fewer liquid assets and less equity than other middle-income older adults, which is making it harder to leverage their home to support future housing and health care needs,” she says. 

The “Forgotten Middle” consists of older adults aged 75+ who do not qualify for Medicaid but lack sufficient resources to pay for assisted living, senior housing, and future care needs as they become afflicted with age-related physical and cognitive challenges. Consistent with previous NORC research findings, middle-income seniors are defined as having annuitized income and assets ranging from $26,000 to $103,000 in 2020 dollars.

The researchers found that home ownership by younger Black older adults is declining and expected to fall substantially by 2035 with Black and Hispanic homeowners projected to have lower home equity. 

The analysis and findings also reveal that marriage rates are expected to drop below 50% across all racial groups, leaving those living alone at a greater risk of adverse health events and social isolation. By 2035, only a quarter of Black older adults and 40 percent of Hispanic older adults will be married, says the researchers.

According to the report’s findings, Black and Hispanic older adults tend to have higher rates of health complications across multiple health indicators, including chronic conditions and mobility limitations. These health complications likely increase the need for additional care.

And the findings noted that middle-income older adults in rural areas may face distinct challenges in their ability to age well due to poorer health outcomes, lower financial resources, lack of support services, and workforce shortages.

“Every older adult deserves to age well, with purpose, regardless of economic circumstances,” said Dr. Sarita A. Mohanty, president and CEO of The SCAN Foundation. “The impending crisis facing people who won’t qualify for Medicaid and won’t be able to afford private home care will impact older adults of color much more acutely. Policymakers, as well as the healthcare and senior housing communities have substantial work to do to ensure that race does not become a hindrance to aging well.”

Rhode Island’s “Forgotten Middle”

For many years, the Senior Agenda Coalition of Rhode Island has been concerned about the so-called “Forgotten Middle” – older persons who are not eligible for Medicaid and other benefits – as they may have income and assets just above the state eligibility guidelines, says Maureen Maigret, SACRI’s policy advisor. According to Maigret, older Rhode Islanders and persons with disabilities living in the community cannot have income over the federal poverty level ($15,060 for a single person; $20,440 for a couple) or, with just a few exceptions, assets of more than $4,000 for a single person or $6,000 for a couple. Most other Medicaid populations can access Medicaid at higher incomes of 138% of the FPL and with no asset limits.

”We believe this is a major inequity for older persons.  As the NORC study points out, persons of color are especially impacted by a wealth gap as they age,” she says noting that they are more likely to have lower incomes during their working years so saving for retirement is a challenge, they have less home equity and are less likely to have retirement accounts.

“Women also are significantly more impacted by a wealth gap in their older years, and this is more pronounced among older women of color,” says Maigret. Citing Rhode Island specific-Census data, she remarked that Hispanic older women are two and a half times more likely to have income below the poverty level compared to older men. And 25% of Black older women vs. 17% of Black older men are living below the poverty level. 

“This is why the Senior Agenda Coalition has consistently worked to address economic security issues and why this year we are advocating to expand the Medicare Savings Program (MSP), also referred to as Medicare Premiums Plan (MPP),” she says. This legislation, now being considered by Rhode Island lawmakers, would help low-income people on Medicare pay for Premiums and co-payments freeing up their limited dollars to pay for basic needs such as food and rent.

Researchers says that findings from their data analysis and literature review revealing disparities across the “Forgotten Middle” must be considered in future policies.  

For a copy of NORAC’s “Forgotten Middle” study, go to  https://www.norc.org/research/projects/understand-historically-marginalized-communities-forgotten-middle.html.

For additional information on the study’s findings and research design rayel-sarah@norc.org.

Report says nation not prepared to tackle senior housing crisis

Published in RINewsToday on March 11, 2024

With the graying of America, the nation is unprepared to provide needed housing and care for millions of seniors, warns a recently released 40-page report by the Cambridge-based Harvard Joint Center for Housing Studies.  The US population age 65 and over has skyrocketed 34% in the last decade, from 43 million in 2012 to 58 million in 2022. This growth is widespread, with urban, suburban, and rural communities across the country reporting increases in older residents, notes the report released on Nov. 30, 2023.

The report’s authors noted that over the same period, the share of households headed by older adults increased from 22 to 27% of all U.S. Households. The number of households headed by a person aged 80 and over will more than double between 2021 and 2040 to reach nearly 17 million households.  

Key takeaways of Harvard’s Housing Report

According to the report, “Housing America’s Older Adults 2023,” as the nation’s population of older adults swells, so, too, does demand for housing that is both affordable and able to accommodate older adults’ changing [health care] needs.   

Accessible housing is also in short supply, say the authors, noting that fewer than 4% of US homes offered the three key features of accessible housing—single-floor living, no-step entries, and wide hallways and doorways—at last measure.

As the US population ages, more older adults will struggle to afford either the home of their choice or the care they need, warns the report. “With subsidies for housing and LTC services scarce, many older adults will have to forgo needed care or rely on family and friends for assistance,” says Jennifer Molinsky, Project Director of the Housing on Aging Society Program at the Center. More funding would be a start, but there is tremendous need for creative alternatives to existing models of care and housing to better support the country’s rapidly aging population,” suggests the report. 

The report noted that seniors, whose incomes are often fixed or declining, increasingly face the “twin challenges” of finding affordable housing and the health care services they need to remain independent and at home. In 2021, an all-time high of nearly 11.2 million older adults were cost burdened, meaning they spent more than 30 percent of their income on housing. Cost burdens are particularly high for renters, homeowners with mortgages, and households aged 80 and over, the report emphasized.  

Costly long-term care (LTC) is out of reach for most seniors, the authors noting the cost of  LTC averaging over $100 per day, nationwide.  They say that most seniors who require these services, having very low incomes, have the fewest resources to pay for them. When LTC services are combined with housing costs, only 14% of single people 75 and over can afford a daily visit from a paid caregiver, and just 13% can afford to move to assisted living.    

The researchers say that government-funded rental assistance can provide crucial support to older adults with very low incomes, but demand dramatically outstrips supply. With homelessness on the rise among the older population, assistance is more important than ever, they add.  Even those with slightly higher incomes also struggle to qualify for government assistance; 29% of people living alone, aged 75+, have incomes above 50% of area median income, but cannot afford the cost of assisted living. Just 8% of this group could afford a daily visit from a home health aide, the report found.

Equity in housing as we age

The report also found that renters and homeowners of color face steeper burdens, too, in paying for housing.  While some older adults have home equity that can be tapped to pay for care or services, many do not. “This is not only because of the increasing number of older adults, but because of widening wealth and income inequality,” says Jennifer Molinsky, Project Director of the Housing an Aging Society Program at the Center, in a statement released on Nov. 30, 2023.  She served as the report’s lead author.

Older renters have only 2% of the net wealth of older homeowners and there are steep inequalities among owners as well; older Black homeowners have the lowest housing equity at $123,000, compared to $251,000 for older white homeowners, $200,000 for older Hispanic owners, and $270,000 for older owners who are Asian, multiracial, or another race, say the authors.

The report’s findings indicated that mortgage debt among older adults is rising, noting that between 1989 and 2022, the share of homeowners 65 to 79 with a mortgage increased from 24 to 41%, and the median mortgage debt shot up over 400%, from $21,000 in 1989 to $110,000.  Over 30% of homeowners age 80 and over are also carrying mortgages, up from just 3% three decades ago.

“Borrowing is often a way for older homeowners to access cash for basic needs or care,” says Chris Herbert, Managing Director of the Center. “Given the importance of housing equity later in life there is a real need for safe and affordable mortgage products that work for older owners with limited incomes,” says Herbert.

The report’s authors suggested that financing incentives could provide better opportunities for those who wish to remain in their communities, but in more suitable homes; this would be particularly welcome in rural and other low-density areas where the choices are especially limited.

Climate change impacts housing

Finally, the growing threat of climate change is impacting older homeowners. The report’s authors noted that some states long favored by older adults because of their warmer weather are increasingly experiencing extreme heat and harsh storms. In addition to health risks, property damage is a rising concern, particularly for the increasing number of older people without insurance. “Severe storms in Florida caused $228 billion in property damage from February 2020 through April 2023, a state that is home to 8.3% of the nation’s older population,” says the report.

Tackling the senior housing crisis in Rhode Island

“Accessibility and affordability of housing has reached a crisis level, impacting all age groups. This excellent report from the Joint Center for Housing Studies at Harvard University confirms that the impact on older Americans is particularly acute. That is why my focus on housing issues is at the top of my agenda, and why I am fighting so hard to pass legislation encouraging the development of accessory dwelling units (ADUs), the number one priority of AARP.  The Harvard study makes it very clear that the need for housing and housing-based care for older adults is growing at an alarming rate, and in Rhode Island, I am dedicated to increasing the availability of suitable housing opportunities for our older residents,” says House Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick).

“The housing report provides comprehensive information on the significant challenges related to the housing needs of older adults. The challenges in Rhode Island are amplified by an old housing stock usually lacking accessibility features and our low rate of housing production,” says Maureen Maigret, policy advisor for the Senior Agenda Coalition of RI.

Maigret, a former Director of the former Department of Elderly Affairs, identifies one particularly relevant section of Harvard’s Housing Report that discusses dual problems faced by older adults with both housing and support needs and how few have the financial means to pay for both housing and even a small amount of home care. This is important for Rhode Island with its high costs for long term care and a growing older population.

The Senior Agenda Coalition of RI (SACRI) applauds House Speaker Shekarchi and so many members of the legislature, specifically for their intense efforts to address the state’s housing needs, says Maigret. “We support the Governor’s budget proposal for a $100 Million Affordable Housing Bond issue but recommend the amount be increased along with an increase in the suggested amount of funds for priority projects for vulnerable populations including economically struggling seniors from just $7.5 Million of the bond dollars,” she says.

SACRI also supports legislation to ease development of ADUs, proposals that include accessibility features in new housing production, continuing the state Home Modification grant program and increasing the income cap for the state Property Tax Relief program, a program that helps both older homeowners and renters) to $50,000,” she says. 

ADUs and the Ocean State

Last week, Senator Victoria Gu (D-Dist. 38, Westerly, Charlestown, South Kingstown) introduced S. 2630, that would allow homeowners to develop an accessory dwelling units (ADU) within the existing footprint of their structures by right, or build an attached or detached ADU if the lot is large enough. This is the companion bill to the one introduced in the House.

ADUs, sometimes referred to as in-law apartments, backyard cottages or “granny flats”, are accessories to existing housing, created as a conversion of part of a house (such as a walkout basement), an attachment to a house, a garage conversion, or a smaller, detached dwelling. They have become increasingly popular around the country in recent years as states and municipalities balance the need to create more housing with preserving the character of residential neighborhoods.

Seniors, especially, have taken to ADUs as a way to downsize while continuing to stay independent in the community. Now the Senate is poised to pass legislation to boost ADU development.

S. 2630 is similar to H 7062, sponsored by Rep. June S. Speakman (D-Dist. 68, Warren, Bristol) which passed the House on Feb. 14, but it differs primarily in how it allows municipalities to apply several code regulations.

If the Senate passes an ADU bill this year, lawmakers will have an opportunity to reconcile the two bills, either passing the house or senate version, or reconciling them somewhere in the middle, or making changes that aren’t in either. Lawmakers must now compromise, on behalf of their older constituents to hammer out legislation for Gov. Dan McKee to sign into law. This would be a first step in tackling the Senior housing crisis in Rhode Island.  It’s a no brainer – and passing it this year is critical to addressing the crisis in housing.

For a copy of Harvard’s Housing report, go to https://www.jchs.harvard.edu/housing-americas-older-adults-2023.

Congressman Magaziner takes baton on bringing back House Aging Committee

Published in RINewsToday on March 4, 2024

Over 30 years ago, the US House Democratic leadership’s belt-tightening efforts to save $1.5 million resulted in the termination of the House Permanent Select Committee on Aging. Congressman Seth Magaziner (RI-2) has picked up the baton from former Congressman David Cicilline who sought to bring back the House Aging Committee during the 114th-117th Congresses.

At press time, Magaziner’s H. Res. 1029, introduced Feb. 23, 2024, has been referred to the House Committee on Rules for mark-up, and if passed, will be considered by the full House.

“Older Americans deserve a seat at the table, particularly when it comes to important issues such as protecting Social Security and Medicare,” said Magaziner in a statement announcing his legislative efforts to pass H. Res. 1029. “I am proud to introduce legislation to re-establish a House Permanent Select Committee on Aging, which will advocate for America’s aging population and ensure seniors’ voices are heard when it comes to federal policymaking,” he says.

Every day 12,000 Americans turn 60. By 2030, nearly 75 million people in the U.S. — or 20% of the country — will be age 65 or older. As our country’s aging population grows, the need for support and services provided under programs like Social Security, SSI, Medicare, Medicaid and the Older Americans Act increases.

“Ensuring that seniors can thrive in our communities should always be a priority for the House of Representatives,” said Congressman Gabe Amo (RI-1)  one of 15 original cosponsors of H. Res. 1029, who initially called for bringing back the House Aging Committee during his campaign to win former Cicillini’s vacant seat.

“That is why it is essential that there is a dedicated committee for lawmakers to focus on the issues that impact seniors’ quality of life. From preserving and expanding Social Security and Medicare to reducing the cost of prescription drugs to keeping seniors in safe and stable housing, there are so many issues to address under the leadership of a Special Committee on Aging. Seniors in Rhode Island and across the country deserve nothing less,” says Amo.

The House can readily create an ad hoc (temporary) select committee by approving a simple resolution that contains language establishing the committee—giving a purpose, defining membership, and detailing other aspects, says EveryCRSReport. Salaries and expenses of standing committees, special and select, are authorized through the Legislative Branch Appropriations bill.

Putting a spotlight on aging issues

H. Res. 1029 simply amends the Rules of the House to establishes a Permanent House Select Committee on Aging, noting that this panel shall not have legislative jurisdiction, but it’s authorized to conduct a continuing comprehensive study and review of the aging issues, such as income maintenance, poverty, housing, health (including medical research), welfare, employment, education, recreation, and long-term care.

The 213-word resolution would have authorized the House Aging Committee to study the use of all practicable means and methods of encouraging the development of public and private programs and policies which will assist seniors in taking a full part in national life and which will encourage the utilization of the knowledge, skills, special aptitudes, and abilities of seniors to contribute to a better quality of life for all Americans.

Finally, the House Resolution would also allow the House Aging Committee to develop policies that would encourage the coordination of both governmental and private programs designed to deal with problems of aging and to review any recommendations made by the President or by the White House Conference on aging in relation to programs or policies affecting seniors.’

Aging organizations, advocates call for passage of H. Res. 1029

According to Max Richtman, President and CEO of the Washington D.C.-based National Committee to Preserve Social Security and Medicare (NCPSSM), jurisdiction over many programs affecting seniors is shared by multiple standing committees, which can make it difficult for them to fully explore solutions that do not fit squarely into a single committee’s expertise. Such issues include a variety of intergenerational concerns that merit attention, such as the growing demands on family caregivers and our intractable retirement security crisis. “An inter-disciplinary approach to these issues can best be advanced by a Select Committee with broad jurisdiction,” he says. 

“Re-establishing a Select Committee on Aging in the House would also complement the strong bipartisan work of its counterpart in the Senate,” says Richtman. “In recent years, the Senate Special Committee on Aging has effectively promoted member understanding on a range of issues,” he says, noting that these issues include concerns of grandparents raising grandchildren, elder abuse and fraud, the effects of the COVID-19 pandemic on older Americans and their families, the importance of financial literacy in planning for retirement, and the costs associated with isolation and loneliness. 

“Historically, the House Select Committee on Aging served as a unique venue that allowed open, bipartisan debate from various ideological and philosophical perspectives to promote consensus that, in turn, helped facilitate the critical work of the standing committees. We believe that issues affecting seniors would be best advanced by the re-establishment of such a Committee in the House,” adds Richtman. 

NCPSSM will endorse H. Res. 1029 and plans to promote it to House lawmakers. If the Democrats take control of the House next November, the organization will approach the Democratic House Speaker when he is crafting rules to operate and request that the rules include reestablishing the HSCoA. 

Nancy Altman, President of the Washington, DC-based Social Security Works, strongly supports Magaziner’ efforts to bring back the HSCoA. “Social Security is a critical issue for older Americans. “There’s so much misinformation out there about Social Security, and as a result many people aren’t confident they’ll get the benefits they’ve earned. More accurate information coming from Congress would help,” she says.

According to Altman, the Social Security Subcommittee of the House Ways and Means Committee does incredibly important work, but Ways and Means has such a broad jurisdiction that Social Security and other aging related issues don’t always get the attention they deserve. “A House Aging Committee could shine an important spotlight, informing the public, the media, and fellow members,” she notes.

Altman offers suggestions to the Rhode Island Congressman to increase the chances for passage of H. Res. 1029. “If he doesn’t already have Republican co-sponsors, he should try to get some since they’re more likely to convince Speaker Mike Johnson to create the committee,” she says. 

In addition to working for passage of H. Res. 1029, this Congress, Altman recommends that Magaziner start working now to line up Democrats to push for the reestablishing the House Select Committee on Aging at the beginning of the next Congress, where there is likely to be Democratic control. 

Robert S. Weiner, now President, Robert Weiner Associates News, was House Aging Committee Chief of Staff under Chairman Claude Pepper, from 1976 to 1980, when the Florida lawmaker headed the HSCoA, as a force to be reckoned with in his advocacy of America’s seniors.

“I saw first-hand the power of that committee when we met with Presideent Jimmy Carter and he endorsed the HSCoA’s efforts to abolish mandatory retirement,” says Weiner, noting that the bill passed 359-2 in the House and 89-10 in the Senate, and signed into law by the President.

According to Weiner, the Carter Center recently invited him to pen an article this fall, for their “last print edition of the “Carter-Mondale Newsletter,” entitled “Carter, Pepper Strike Blow Against Age Discrimination.”

“We also held high-powered hearings on nursing home abuses, cancer insurance fraud, the need for expanded home health care (which ultimately became law), elder abuse, and pensions,” adds Weiner. As to Social Security, the Pepper-O’Neill-Reagan deal guaranteed the solvency of Social Security through 2034.

As to legislative strategy, Weiner suggests that Magaziner get 100 plus sponsors – Democrats and Republicans – by bringing a copy of the resolution to the House floor and getting cosponsoring significantly efficiently and quickly by first-hand recruiting action. He might even ask to address the House for a one-minute speech about the importance of passing H. Res. 1029.

“Both parties are nuts if they don’t help seniors by having a dedicated House Select Committee on Aging,” asserts Weiner.

“This is a significant opportunity for the Congress to take a comprehensive view as to how we as a country wish to better support the aging of America.  Older adults suffered the most during the COVID pandemic — more than 90% of the deaths were individuals over 60.  Many older adults are still suffering from loneliness and social isolation.  Such a bipartisan effort led by Congressmen Magaziner and Amo would be historic,” stated Vincent Marzullo, who served 31 years as a career federal civil rights and social justice administrator at the National Service Agency, and a well-known aging advocate.  He serves on Magaziner’s he RI-02 Seniors Advisory Committee.

The clock is ticking. With the upcoming presidential elections taking place in about 246 days, Magaziner must quickly work to get House Republicans cosponsors to get House Speaker Mike Johnson to allow a vote in the House Rules Committee. Without support of his caucus, he is likely to say no.

Magaziner must convince Congressmen Brian Fitzpatrick (R-PA) and Josh Gottheimer (D-NJ), co-chairs of the “Problem Solvers Caucus,” consisting of essentially an equal number of 63 Republican and Democratic lawmakers, to push for passage of H. Res. 1029.  This may be the only way to pass a resolution to reestablish HSCoA in a Republican-controlled House.