sign in • sign up
web | myLot | discussions | tasks | blogs | news | photos
homeinterestsdiscussionstasksblogsnewsmessages friendsphotosearningsmyLotquizzes

sponsors
AARP Medicare Options
AARP-branded insurance& discounts. Supplemental health insurance.
AARPHealthCare.com

Kimpton Hotels And
Find top-rated Restaurants near you Try Citysearch® now
Washingtondc.Citysearch.com

Washington DC Child Care
Find the ideal caregiver for your baby. Search our local listings now.
www.Care.com/childcare

Revised formula counts more Americans in poverty email this discussion to a friend?

By HOPE YEN
Associated Press Writer
 
3 months ago

WASHINGTON (AP) - The poverty rate among older Americans could be nearly twice as high as the traditional 10 percent level, according to a revision of a half-century-old formula for calculating medical costs and geographic variations in the cost of living.


The National Academy of Science's formula, which is gaining credibility with public officials including some in the Obama administration, would put the poverty rate for Americans 65 and over at 18.6 percent, or 6.8 million people, compared with 9.7 percent, or 3.6 million people, under the existing measure. The original government formula, created in 1955, doesn't take account of rising costs of medical care and other factors.


"It's a hidden problem," said Robin Talbert, president of the AARP Foundation, which provides job training and support to low-income seniors and is backing legislation that would adopt the NAS formula. "There are still many millions of older people on the edge, who don't have what they need to get by."


If the academy's formula is adopted, a more refined picture of American poverty could emerge that would capture everyday costs of necessities besides just food. The result could upend long-standing notions of those in greatest need and lead eventually to shifts in how billions of federal dollars for the poor are distributed for health, housing, nutrition and child-care benefits.


The overall official poverty rate would increase, from 12.5 percent to 15.3 percent, for a total of 45.7 million people, according to rough calculations by the Census Bureau. Data on all segments, not only the elderly, would be affected:


- The rate for children under 18 in poverty would decline slightly, to 17.9 percent.


- Single mothers and their children, who disproportionately receive food stamps, would see declines in the rates of poverty because noncash aid would be taken into account. Low-income people who are working could see increases in poverty rates, a reflection of transportation and child-care costs.


- Cities with higher costs of living, such as New York, Chicago and San Francisco, would see higher poverty rates, while more rural areas in the Midwest and South might see declines.


- The rate for extreme poverty, defined as income falling below 50 percent of the poverty line, would decrease due to housing and other noncash benefits.


- Immigrant poverty rates would go up, due to transportation costs and lower participation in government aid programs.


The changes have been discussed quietly for years in academic circles, and both Democrats and Republicans agree that the decades-old White House formula, which is based on a 1955 cost of an emergency food diet, is outdated.


The current calculation sets the poverty level at three times the annual cost of groceries. For a family of four that is $21,203. That calculation does not factor in rising medical, transportation, child care and housing expenses or geographical variations in living costs. Nor does the current formula consider noncash aid when calculating income, despite the recent expansion of food stamps and tax credits in the federal economic stimulus and other government programs. The result: The poverty rate has varied little from its current 12.5 percent.


Next week, the Census Bureau will publish official poverty figures for 2008 with a cautionary note about the shortcomings. The agency says it will expedite release of alternative numbers in the following weeks, because of the interest expressed by lawmakers and the Obama administration in seeing a fuller range of numbers.


"The current poverty measure does a very bad job of measuring the impact of quite a few of our anti-poverty policies," Rebecca Blank, the Commerce Department's undersecretary of economic affairs, said in an interview. "It isn't meaningless, but it isn't complete."


Although the White House Office of Management and Budget dictates how federal poverty is measured, legislation pending in Congress would require use of the National Academy approach. Advocates are hoping the White House may act on its own.


Cities are already showing interest.


In New York City, roughly one in three senior citizens fell below the poverty line after Mayor Michael Bloomberg adopted the new formula last year; state officials in Albany, N.Y., plan to publish their revised numbers next month. Los Angeles, Miami, Washington, San Francisco and Chicago also have been considering a switch.


Nationally, official poverty rates for older Americans have improved significantly over the past 30 years due to expansions of Social Security and Supplemental Security Income. But many older people with modest cash incomes would fall below the poverty line under the NAS formula due to out-of-pocket expenses from rising Medicare premiums, deductibles and a coverage gap in the prescription drug benefit that is known as the "doughnut hole."


The NAS figures could take on added significance at a time when the government is touting an overhaul of Medicare and Social Security as its best hope for reducing the ballooning federal debt.


 

On the Net:

AARP: http://www.aarp.org

Census Bureau: http://www.census.gov

Commerce Department: http://www.commerce.gov/

sponsors
FAFSA Financial Aid Calculator
Free 2008 college guide. Info on grants and fafsa financial aid.
Free-Edu-Guide.com/FAFSA

New Mortgage Rates Low As 2%
See If You Qualify For Obamas Home Affordable Modification Plan.
ObamaHousingPlan.net

Care
Help us in the fight against poverty. Donate to CARE today!
www.CARE.org

tags:  united states, older americans poverty, jobs, discrimination
 
1. myLot reputation of 93/100. Youreyes4Today (849)   3 months ago

Considering we are at the highest level of joblessness in this country, the elderly are hit the worst. Why because some are laid off or let go right before retirement so they loose that income. Sad but it is true and happens more now than ever. What to save that company money, not the person that helped them get where they are. They forget the little people that put them where they stand.

No Jobs either to help supplement that lost income, because it is so difficult to find a job after you go past that 50 mark of age. All of a sudden we have become brainless or something that are worth has become nill. Yet we lived this long, learned so much, and the wisdom gained, well just say many younger people just feel they don't need help or want to hear something that may help them.

Many older population is just faded into the scenery not to even take notice they are there. Sad but true..

 
2. myLot reputation of 91/100. the_vicar (4843)   3 months ago

The problem is just going to get worse as the economy continues to tank. SOmething needs to be done for poverty stricken seniors. They cannot even get government jobs because most federal jobs are closed to people older than 37. I was told it had something to do with the retirement system in the federal government. But what are older Americans supposed to do when they can't get a job because of age descimination? I understand there isn' supposed to be descrimination, but there is and it s terribly hard to prove.


myLot reputation of 93/100. Youreyes4Today (849)  3 months ago

There isn't suppose to be age discrimination true. The thing is it is out there, unseen, why do I say this? Because I am one of those suffering from this. Even after going back to school, the school didn't even try and get me work after I finished with a 3.89 gpa for my degree in Computer Network Engineer. That was part of the contract with the school to help get work after getting the degree. Didn't happen no matter how many times I called or went there. Age is a big part of if you get hired or even considered these days.

To bad the knowledge and wisdom isn't respected anymore as it once was.

 
sponsors
Single and Over 40?
Meet Older, Sincere Singles Everyone is Serious and Screened.
www.MatureSinglesOnly.com

Publish with Createspace
D.I.Y. Book Publishing with Free PDF Setup Or Let Designers Create.
www.CreateSpace.com

Residence Inn Dupont Circle in D.C
Official Site: Marriott RI Dupont Circle. Book Now& Save.
www.Marriott.com/wasri

other national news

NYC man gets 75 years for mugging 101-year-old

A New York City man who mugged a 101-year-old woman on her way to church has been sentenced to 75 years in prison.

Started in national news • 1 hour ago • 0 responses
Only sliver of aid for US-Mexico drug plan spent

Only $26 million of the $1.4 billion authorized to help Mexico and Central America fight organized crime has been spent due to bureaucracy, conditions placed on the funds by Congress and preparations...

Started in national news • 3 hours ago • 0 responses
Search on for missing Ore. Christmas tree cutters

Searchers combed dark and snowy forests near the crest of the Cascade Range in southern Oregon on Wednesday night for a couple who told their kids they were off to cut down a special Christmas tree...

Started in national news • 5 hours ago • 0 responses
Tags: united states, tree hunt missing
Wyeth painting sells for $6.9M at NY auction

An Andrew Wyeth painting of his teenage son standing on a bluff overlooking the St. George River in Maine has set the second-highest auction price for the artist's work.

Started in national news • 5 hours ago • 0 responses
5 arrested in fatal beating of CA security guard

A man and four teens have been arrested on allegations that they beat a security guard to death after he found them drinking in a vacant apartment in California.

Started in national news • 3 hours ago • 0 responses
return to mylot
We are loading a word from our sponsors. No thanks, cancel loading.