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One On One with Senator John Breaux
Senator Breaux is the ranking Democrat on the Special Committee on Aging, and has used his position to highlight the importance of protecting and strengthening Social Security, Medicare and other programs essential to the health and well-being of older Americans. In the 106th Congress, the Special Committee on Aging is focusing on saving Social Security, ensuring income security and employment opportunities for seniors, saving and improving Medicare and improving access to and quality of long-term care, as well as other goals. Assisted Living Success recently invited Senator Breaux to share some of his thoughts and insights on a number of key points affecting assisted living and the long-term-care industry as a whole ... How should Congress position itself to prepare for the baby boomers' retirement years? I think Congress, and the nation as a whole, needs to examine all areas that will be affected by the retirement of the baby boomers, and make the necessary changes for older Americans. There are certain policy areas, such as Medicare and Social Security, where we know changes are necessary to meet the needs of aging boomers. But in other policy realms, such as technology, research, transportation and long-term care, we need to do more homework to better prepare for tomorrow's challenges. What is your impression of assisted living, particularly as it relates to you personally (with relation to loved ones, etc.)? I don't have any relatives who reside in assisted-living facilities. My mother-in-law lives at home with my wife and me. However, several members of my staff have family members in assisted-living facilities, and I've heard good things about them. The concept of assisted living is a great one. We all want choices about where and how we will live in our later years. Assisted living offers a great choice for individuals who can no longer live independently in their own home, but who don't need the care you traditionally find in a nursing home. How should the assisted-living industry prepare for the "graying of America"? How will demographic shifts affect marketing plans? I think the assisted-living industry needs to focus on quality and affordability when preparing for the aging of the baby boomers. The baby boomers are known for their buying power and the demand for quality. They will carry those characteristics as they age and look for different ways to meet their long-term-care needs. They will also demand affordability. Boomers of all socioeconomic backgrounds will see what assisted living has to offer and will want to be part of it. So I think it's in the best interest of the industry to keep the market open. What do you think lies ahead for the nursing-home industry? With the coming retirement of the 77 million baby boomers, nursing homes will continue to have a solid client base. But, many baby boomers are likely to be consumers of new technologies and products that will allow them to stay in their homes, or choose the independence afforded by an assisted living facility. When these same boomers need nursing home care, they will be older and sicker. Policymakers and health providers must take a hard look at the payment system for nursing home care, which is likely to become more expensive for consumers. In addition, consumers should carefully plan for their own long-term care. What were the repercussions following the release of the General Accounting Office report last spring? The GAO report released at an Aging Committee hearing last spring was a very effective means of learning about the current state of assisted-living. The report, which examined quality-of-care issues and consumer protections, identified problems where the assisted living industry and state regulators must work harder. But the report also made it clear that most of those problems can be fixed. I've been happy to see how the industry has embraced accreditation through independent agencies. And it appears there has been some effort to ensure consumers are better informed when shopping around for assisted living. More work needs to be done, but I believe these initial steps are very encouraging. What's the objective of releasing a second study/report? Anytime the Aging Committee identifies an area where older Americans can be better served, it is crucial to follow up and see what progress has been made. So far, the Committee hasn't started working on a second GAO report, but it hasn't ruled that option out, either. Only once the accreditation process is fully implemented and the industry has had time to correct any deficiencies can Congress re-examine assisted living. We will then see where we have made progress and where more work needs to be done. What, in your opinion, is the fate of assisted living? Should federal regulation step in? Federal regulation is a mixed bag for everyone. Clearly, not every industry needs federal oversight. However, if it appears that the states and the industry aren't doing an adequate job, it may be necessary for the federal government to step in. I see this as a huge incentive for all parties involved to really work together and create an effective system of internal policing and state regulating that eliminates the need for federal involvement. How should the industry prepare for or prevent that possibility? To eliminate the need for federal regulation, all parties involved in assisted living must work together. States must have firm systems of oversight in place. Facilities must work around the clock to provide the best care possible. The industry must ensure that good, accurate consumer information is available. Membership organizations must identify the bad facilities that give the industry a bad name. If all of these things happen, it is possible the assisted-living industry can continue to grow and meet people's needs without the federal government intervention. How does your state regulate/oversee assisted living? In Louisiana, assisted-living facilities are licensed as adult residential care facilities. There are core requirements for these facilities, as well as guidelines that contain special requirements for staff training, administrators and living units. I would like to see Louisiana start a Medicaid waiver pilot program to help low-income seniors with the cost of assisted living care. Waiver programs are crucial. It is important for assisted living to be available to people of all income levels. Based on your participation in the recent Global Aging conference: As the United States, western Europe and Japan all undergo a simultaneous aging in the next 25 years, how will their struggles to fulfill their old-age pension and health obligations affect international economic stability and global security? It is important we ensure solvency for Social Security and Medicare, and work with our foreign allies so they can improve their programs as well. Globalization has created a situation where the United States, western Europe and Japan--which together account for two-thirds of the world's global output--are more mutually dependent on each other than ever. We cannot afford to ignore each other's problems because the demise of an ally and trade partner will effect America. As people in France, Germany, Italy, Japan and the United States continue to move into old age, our governments will have to dedicate more resources to provide promised income and health security benefits. If programs like Social Security and Medicare continue to consume more of the American budget unabated, we will have to divert more funds from important programs like education and national defense to fund these entitlement programs. How does senior housing in the United States compare with programs internationally? Although we are aging globally, factors such as culture, economic well-being and the presence of a long-term care system all influence how different countries provide for their seniors. Japan, which is aging much faster than the rest of the world, recently offered a nationwide long-term care program that is community-based. Of course, this will have an impact on housing, as do long-term care policies in almost every nation. You've stated that there is a need to reform Medicare and Social Security programs. Can you outline or give some examples of what steps are necessary, and what the outcome would be should those steps be implemented? Medicare and Social Security must be reformed and modernized if we are to preserve these programs for generations to come. If we do nothing, Social Security will be bankrupt by the year 2037, and Medicare, even sooner, by 2023. As I've said in the past, simply throwing more money at Social Security and Medicare is like adding rocks to a sinking ship. That's why we must resist temptations to simply add prescription drug benefits or maintain current funding levels without comprehensive reform and modernization of Medicare and Social Security. Over the past year, I have introduced comprehensive, bipartisan legislation to improve and restore solvency to both Social Security and Medicare. My plan is to work with both Republicans and Democrats to create a comprehensive, yet moderate, set of reforms that can win political and public support. We will maintain the fundamental guarantees of Social Security and Medicare, and add new and innovative aspects for tomorrow's elderly. My Social Security proposal will save the program by diverting two percent of the 12.4 percent of taxes workers contribute to the Social Security program into private retirement accounts. Individuals can choose between three to five funds to invest their retirement money. They own their individual accounts, and can pass it onto heirs. My plan creates incentives to encourage individuals to work longer and provides financial assistance to widows and low-income individuals to boost their retirement income. As for Medicare, I've teamed with Republican Senator Bill Frist of Tennessee, the Senate's only medical doctor, to introduce a plan that is based on the same health benefits plan used by myself and nine million other federal employees. Our plan preserves Medicare by giving seniors a choice among plans that suit their needs. At a minimum, all beneficiaries will be entitled to the same benefits they are entitled to today. In addition to the guarantee of core benefits, our proposal keeps step with transformations in health care by providing access to prescription drugs and emerging medical technologies. Our plan will preserve the fundamental nature of the Medicare program, while providing better benefits and lower costs through the use of preventative treatments.
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Senator John
Breaux (D-La.) was elected to the House of Representatives in 1972, representing the 7th
District of Louisiana for 14 years before being elected to the Senate, where he is
currently serving his third term.|
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