Aarp Group Seeks Action On Key Issues

Minimum wage, corporate downsizing, jobs for more mature workers, medical savings accounts and long-term care are top concerns in Eastern Washington.

At least, these are the hot buttons for 5th Congressional District members of AARP/VOTE, the voter education arm of the American Association of Retired Persons.

The fallout from a proposed federal hike in the minimum wage is “highly overstated,” retired economist Reed Hansen of Pullman declared at a recent regular meeting of the senior advocacy group in Spokane. “An increase would impact some very large national employers who can well afford to pay more and who would continue to prosper,” he assured.

The former Washington State University professor said when he hires kids he pays more than the minimum wage. “It’s embarrassing,” said the economist, “to pay that little.”

Mike Rendish said that before attending a recent meeting in Washington, D.C., of the National Legislative Council on which he serves, area AARP members urged action to “protect older workers jobs and retirement programs.” Also a concern, said Rendish, another retired Pullman educator, was “more employment opportunity for older and ‘retired’ workers.”

Rendish reported the legislative council took action “to encourage employers as much as possible to create jobs - especially for those 60 to 65, who are most in jeopardy.

“We have downsizing on one hand,” observed Ross Boreson of Spokane, “and continued growth on the other. If downsizing continues and consumer credit reaches a point where it doesn’t expand, is the economy in trouble?”

“Yes,” said economist Hansen. Others agreed.

“So many indicators suggest the economy is sluggish,” said Hansen in a report on the national economic outlook, “but the stock market is soaring.”

Rendish asked Newt Gingrich how he could defend aggressive corporate downsizing of domestic workers while importing cheap foreign labor. The Speaker of the House “talked around” the issue without ever giving an answer.

Noting that “we are a non-partisan group,” district Chairman Frank Yuse of Spokane sought comment on what he termed the “conservative” approach to reducing the growth rate of spending for Medicare and Medicaid. All agreed expenditures would continue to rise. But the consensus was benefits would fall.

The reason: Spending would not keep pace with inflation, population pressures and increased need, including escalating demand imposed by illegal aliens.

Nick Beamer, district director of Aging and Long Term Care of Eastern Washington, said his agency has appealed to the president for help to preserve Medicaid. A letter to Clinton charges that reform recommendations of the National Governors Association threaten to “impoverish relatives” of nursing home patients, “fragment nursing home standards,” and deny eligibility to many sorely in need of care.

“States could cut back benefits,” said Beamer, “and I know many states would.”

As to medical savings accounts sought by “conservatives” in health reforms even now being hammered out by congressional conferees, AARP/Vote turned thumbs down.

Beamer said the biggest problem with the concept is that it undermines the process of community rating, which pools high risk and low risk people so all have access to coverage. With medical savings accounts, those who are lower risk, those wealthy enough to take greater risk, and those willing to gamble would pull out of the pool, stranding those who must remain with unaffordably higher rates.

Yuse questioned whether medical savings accounts would not also be anti-preventive care, encouraging those with medical savings accounts to skimp on essential medical services to save money in ways that could cost them and society far more in the end.

Economist Hansen said medical savings accounts would be “one more tax shelter for the more affluent.”

, DataTimes MEMO: Associate Editor Frank Bartel writes on retirement issues each Sunday. He can be reached with ideas for future columns at 459-5467 or fax 459-5482.

The following fields overflowed: CREDIT = Frank Bartel The Spokesman-Review