The Age Wave: An Opportunity to Live Better, Longer

Below is an article by Ecumen President and CEO Kathryn Roberts, which ran in yesterday’s Saint Paul Pioneer Press:The Age Wave: An Opportunity to Live Better, LongerAbout 70 people young and old recently met for two days at the Citizens League’s offices in St. Paul to brainstorm how to improve health care, communities and the state budget. Here’s what these people had in common: All were aging and see it as transformative opportunity for the marketplace and public policy.Why is it so important for citizens, businesses, policymakers, health care providers and others to focus on aging and transformation? I answer with another question: How do you want to live?Government nursing homes have been the cornerstone of Minnesota’s long-term care system since the 1960s. Medicaid €” called Medical Assistance in Minnesota €” doesn’t cover the cost of care. An inefficient, outdated system leads to a continuous state budget battle over nickels and dimes that never catches up with costs.Those nickels and dimes nonetheless add up. Long-term care is a big, fast-growing budget item. At $1.5 billion, it has almost doubled since 2000, with $7 of every $10 going to government nursing homes rather than less expensive services such as at-home or assisted living.Minnesota is stuck in a time warp at the worst possible time: a permanent shift in the age of our state’s population.In 2011, baby boomers begin turning 65. In 2020, Minnesota’s seniors will outnumber children. The largest-growing population group is the ‘old-old,’ those 85 and older. And, if obesity trends don’t reverse, we’ll see more disabled young people.

Factor in the wildcard of Alzheimer’s, currently an incurable, care-intensive disease afflicting more and more people.

Absent innovation, government spending for long-term care in Minnesota could easily exceed $20 billion by 2050.We can’t change demographics. We can change how we live and pay for the privilege. We have to. A new age demands new solutions.That’s what the Citizens League workshop was about. Ideas included:

  • A tax-advantaged savings program for expenses from home modification to memory care.
  • Integration of technology that connects people with each other and delays or eliminates a nursing-home stay.
  • Multi-county or other local referendums, so that people can develop and fund local or regional solutions. If, for example, a county’s residents believe a senior transportation system is important, they would fund that priority.
  • A community ‘Age Well’ assessment and certification that promotes communities’ lifetime livability. Communities could earn a special designation, illustrating how well they are prepared for an aging population.On Aug. 13, some Nebraska officials will come to Minnesota to share details of their Long-Term Care Savings Plan at a public event hosted by Ecumen, the Citizens League, a bi-partisan legislative group called the 2020 Conference and the Minnesota Chamber of Commerce.Introduced last year, Nebraska’s plan is the first of its kind in the nation. Think of it as a 401k for aging services. Why a special aging-services savings tool? Because many people view their current retirement accounts as dollars for daily living staples or as ‘fun money’ rather than a fund that could pay for memory loss or home care.Nebraskans can contribute to their individual funds and receive a tax deduction. Savings and earnings are excluded from state tax until withdrawn €” as long as they’re used for long-term care services (at any age) such as technology, home modification, insurance premiums and nursing care. Funds not used can be passed to a beneficiary, making intergenerational planning and personal responsibility a much stronger part of the solution.Minnesota needs new ideas to pay for choices consumers desire, protect the state budget, preserve safety nets for those who can’t escape poverty and forge a truly coordinated cradle-to-grave health care system. We know what’s before us. It’s a big wave and an even bigger opportunity.WORKSHOPLearn more about Nebraska’s new long-term-care savings plan from 8 a.m. to 9 a.m. Aug. 13 at the Wilder Center in St. Paul. Register by Aug. 6 on the Citizens League Web site: www.citizensleague.org. Or, for more information, call 651-293-0575, ext. 10. The free workshop is presented by Ecumen, the Citizens League, the 2020 Conference and the Minnesota Chamber of Commerce.
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