ElderWeb

Kenneth M. Langa, MD, PhD led a team from the University of Michigan studied the differences in home care services used by people who lived alone and those who lived with others in 1993 and 995. They investigated whether the large growth in paid home care services that took place during the early to mid-1990s was targeted to individuals with higher levels of disability and lower levels of social support, groups which historically have been more likely to use paid home care services and are at higher risk for nursing home admission. The researchers concluded that the large increase in formal home care services provided during the period of their study went disproportionately to those with greater social support, and that home care policy changes in the early 1990s resulted in a shift in the distribution of home care services toward the elderly living with their children. The report is published in the February issue of Medical Care.

The Detroit Free Press reports that many grocers are having difficulty keeping elderly customers from taking their shopping carts home with them. Eighty-year-old Southfield Councilman Sidney Lantz plans to discuss this problem at next week's city council meeting. He said grocery store managers are seeing carts disappear in especially large numbers in neighborhoods that have many elderly residents -- and the carts often show up in the parking lots of senior citizen high-rises. Lantz says the frailer seniors need to lean on the carts to get their groceries home, and proposes that the city purchase 100 collapsible carts -- at $17 apiece -- and give them to seniors in need so that they won't have to take the grocery store carts. Lois Hitchcock, 70, chairwoman of Southfield's Commission on Senior Adults, says she doesn't think the solution is feasible. Bill Knox, a 59-year-old communications representative for the AARP, calls it ageism, and said "until someone can demonstrate that older citizens are responsible for stealing shopping carts, I'm reluctant to see this as an issue."

Michigan Office of Financial and Insurance Services (OFIS) Commissioner Frank M. Fitzgerald issued a bulletin reminding Michigan insurance agents that securities registration is necessary to sell viatical and promissory note products. He noted that some promoters are claiming that these investments are not securities, but both viaticals and promissory notes are securities under Michigan law.

Viaticals are arrangements between the owner of an insurance policy (the viator) and a third party (the provider). The provider negotiates with the viator for the purchase of his/her life insurance policy or the beneficiary rights under that policy. The broker then solicits funds from investors to purchase the policies. Older people sometimes sell life insurance policies to viatical brokers in order to get funds they need to pay for long term care costs. Older people are also often targeted as prospective purchasers of viatical products as investments.

The Commission warns agents and consumers that anyone selling viaticals in Michigan without a securities registration violates Michigan law. Agents should not rely on the viatical company to determine whether the investments are securities. Agents are responsible for knowing if investment products are securities and for ensuring that any sale of a security is in compliance with Michigan law. Violation of Michigan securities law can be punishable by revocation of any existing insurance licensure, financial liability for the transaction, regulatory sanctions and criminal prosecution.

Viatical arrangements can also be subject to issues of suitability and fraud. As with any investments, agents are responsible for taking into consideration such factors as age, financial situation and investment objectives of the client. In addition, some viatical settlements are being sold in a way that is misleading with regard to the safety of the investment and the return that can be expected. Making misleading statements in the offer and sale of a security constitutes fraud. Failure to do consider suitability or any fraudulent actions may be subject to civil, administrative or criminal liability.

Agents or persons seeking more information on the proper registration of viaticals, promissory notes and other securities products should call the Office of Financial and Insurance Services toll free at 877-999-6442.

The Michigan Department of Attorney General is currently investigating several cases of identity and/or check theft in resident care facilities in Michigan. Investigations have revealed that resident care facility employees, pool agency employees and individuals posing as employees, are committing these crimes by using their position to gain access to important personal information. This information is used to obtain credit cards and access financial accounts.

They offer tips to consumers to avoid becoming victimized:

* Be alert to visitors and unidentified individuals in care facilities.
* Discourage residents from pre-signing any checks and/or leaving checkbooks, credit cards, mail, etc. unsecured or unattended.
* Keep residents' non-medical personal information, i.e. Social Security Number, date of birth, driver's license number, home address and employment history secure.
* Treat ATM cards, credit cards, credit card mailings, and checkbooks as if they were cash.
* Review financial and credit statements for unauthorized activity.
* Carefully dispose of receipts, insurance forms and statements.
* Report identity theft in resident care facilities to local law enforcement, or contact:

Attorney General Jennifer M. Granholm
Health Care Fraud Division
P.O. Box 30218
Lansing, MI 48909
1-800 24-ABUSE [1-800-242-2873]

Michigan's Long Term Care Workgroup published preliminary results of their study into the Michigan long term care system, and are continuing to meet to refine the final report. They made a number of recommendations for changes. Among other things, they recommend development of a "single point of entry" program that will make it easier for beneficiaries to access services provided by different state agencies. They also suggest that the tobacco settlement money be used partly to education Michigan residents about long term care issues to encourage them to take personal responsibility for planning for their long term care needs.

One innovative idea they propose is to require long term care insurance policies to permit the use of benefits as a pool of money, rather than as a daily benefit for a fixed number of years. Instead of a $100 per day three-year maximum benefit policy, such policies would provide a $109,500 pool of money which could be spent to allow the benefits to last more than three years, with no penalty for seeking alternative care, such as assisted living, to make the benefits last longer.

They also recommended that the state consider making insurance premiums and caregiver expenses tax-deductible, and that they extend the "look-back" periods which make people who have divested themselves of assets ineligible for Medicaid from 3 years to 10 years.

- submitted by Cathy Weslock

In the City of Wyoming, Michigan, seniors are benefiting from a service called Stepping Stones. Stepping Stones is a new innovative program for homebound seniors utilizing Recreation Therapy. This is the first program of its kind for a municipality. A Certified Therapeutic Recreation Specialist (CTRS) uses Recreation Therapy to help seniors overcome obstacles to that they can return to active lifestyles. The therapy enables individuals to develop a range of skills including physical mobility, problem solving, safety and judgment, and social skills.

Developed in collaboration with Grand Valley State University, with funding from the Kent County Senior Millage, this model program has allowed seniors to be discharged from the program back into the community, where they are now active. The program is ideal for individuals suffering from an acute onset of illness or disability. Referrals for this program come from local hospitals, senior centers, and rehabilitation centers.

Since neither Medicare nor Medicaid cover Recreation Therapy outside of a nursing home or hospital setting, the clients are asked for a donation to help cover costs. However, no individual will be turned down for inability to donate funds. This homebound program is a great compliment to Physical and Occupation Therapy typically offered in the home.