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Aging Agency Prepares for Older American Act Reauthorization

Proposing technical changes and new 'Choices for Independence'

March 19, 2006 – Representatives from the Administration on Aging will be meeting today at the 2006 Joint Conference of the National Council on Aging and the American Society of Aging to discuss changes they are proposing in the reauthorization of the Older Americans Act, including a proposal called "Choices for Independence," which is a $28 million demonstration project. AoA says it builds on the mission and success of the Act and aims to strengthen and modernize its role in promoting consumer choice, control, and independence in long-term care.

 

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Choices aims to strengthen the nation’s capacity to promote the dignity and independence of older people and meet the challenges associated with the aging of the baby boom generation, according to AoA.  

"It also aims to supplement the President’s New Freedom Initiative and the Administration’s policy for modernizing Medicare and Medicaid by strengthening the Act’s role in promoting consumer choice, control, and independence in long-term care," the agency says. 

The Older Americans Act supports a Federal, state, tribal and local partnership known as the national aging services network, which includes 56 state units on aging, 655 area agencies on aging, 243 tribal organizations, 29,000 community-based organizations, and over 500,000 volunteers. 

The network uses $1.4 billion in federal funds each year to leverage an additional $4 billion from other public and private sources to provide home and community-based services to over 8 million elderly individuals. Services include home-delivered meals, nutrition services in congregate settings, transportation, adult day care, health promotion, and support for family caregivers.

The reauthorization package also includes technical amendments which clarify some of the issues that were raised in earlier listening sessions conducted by Assistant Secretary Josefina G. Carbonell.

The proposed Choices for Independence Proposal, and the technical clarifying proposals are below.

Technical Clarifying Amendments

1.  SEQ CHAPTER \h \r 1Clarification of State Portion of Non-Federal Share
 SEQ CHAPTER \h \r 1This provision would clarify the State-only portion (as opposed to the State/local portion) of the non-Federal share of the cost of supportive services, senior centers, and nutrition services provided under title III.

2.  SEQ CHAPTER \h \r 1Consumer Contributions
 SEQ CHAPTER \h \r 1This provision would clarify current cost-sharing authority to permit States to establish a fee-for-service system, on a sliding fee scale, for receipt of services funded under the Act.  Fee revenues (and voluntary contributions) could be used only to provide Act services.  Individuals with self-declared incomes at or below the Federal poverty level would be exempt from fees, and fees would not be permitted with respect to information and assistance services or any services provided under title VI (grants for Native Americans) or title VII (allotments for vulnerable elder rights protection activities).

3.  SEQ CHAPTER \h \r 1Designation of a Single Statewide Planning and Service Area
 SEQ CHAPTER \h \r 1This provision would clarify that States are permitted under the Act to consolidate a system of multiple planning and service areas (PSAs) into one statewide PSA.  The existing due process provisions of the Act associated with a State making such change remain in force.

4. Funding for Program Evaluation
 SEQ CHAPTER \h \r 1This provision would provide a new mechanism for funding the evaluation of Older Americans Act programs.  The proposed legislation would replace the current funding authority (under which no more than a specified dollar amount may be taken from title III and IV funds, respectively) with new authority permitting the use, for evaluation purposes, of up to 0.5 percent.

5.  SEQ CHAPTER \h \r 1Nutrition Services Incentive Program
This provision would streamline the administration of the NSIP program by providing States with their allotments in the form of cash.  Flexibility is provided for local nutrition programs that desire to access commodities to use part or all of their cash allotment to obtain them from local school food authorities.  In addition, the proposal provides for the dissemination of information regarding school food authorities to local nutrition grantees.

6.  SEQ CHAPTER \h \r 1Self-Directed Care Under Older Americans Act Programs
 SEQ CHAPTER \h \r 1This provision recognizes the importance of the Act’s historical emphasis on the use of consumer-directed models of care.  It provides, to the greatest extent feasible, that Act services to assist individuals with activities of daily living be furnished in a manner that offers such individuals the maximum choice and control over the provision of such services.

Choices for Independence

Reauthorization of the Older Americans Act includes a proposal to pilot Choices for Independence, a $28 million demonstration project to promote consumer-directed and community-based long term care options. Choices aims to strengthen the nation’s capacity to promote the dignity and independence of older people and meet the challenges associated with the aging of the baby boom generation.  It also aims to supplement the President’s New Freedom Initiative and the Administration’s policy for modernizing Medicare and Medicaid by strengthening the Act’s role in promoting consumer choice, control, and independence in long-term care. 

The Older Americans Act supports a Federal, state, tribal and local partnership known as the national aging services network, which includes 56 state units on aging, 655 area agencies on aging, 243 tribal organizations, 29,000 community-based organizations, and over 500,000 volunteers. 

The network uses $1.4 billion in federal funds each year to leverage an additional $4 billion from other public and private sources to provide home and community-based services to over 8 million elderly individuals. Services include home-delivered meals, nutrition services in congregate settings, transportation, adult day care, health promotion, and support for family caregivers.

Choices for Independence builds on the mission and success of the Older Americans Act. It also builds on recent HHS initiatives, including: the Aging and Disability Resource Center Initiative; the Own Your Future Long Term Care Awareness Campaign; the Cash & Counseling Demonstration Program; and, the Evidence-Based Disease Prevention for the Elderly Program.

Choices integrates best practices from these initiatives into a three-pronged strategy focused on: empowering individuals to make informed decisions about their long-term support options; providing more choices for individuals at high-risk of nursing home placement; and enabling older people to make behavioral changes that will reduce their risk of disease, disability, and injury. 

The Older Americans Act is uniquely positioned to advance these changes.  It has a statutory focus on keeping older people independent and living in their own homes and communities for as long as possible, and a successful history of providing low-cost, non-medical supports through a federal, state and local partnership under a capped federal appropriation.    

Empowering Individuals to Make Informed Choices

Choices aims to empower individuals – both those in immediate need and those who have the ability to plan ahead for their long-term care – to make informed decisions about their support options. 

To promote ownership over long-term care planning, Choices will conduct a public education campaign and provide individual support through “one stop” resource centers, known as Aging and Disability Resource Centers. 

These resource centers will be “visible and trusted” sources that people can turn to for information on all available support options, including private financing options such as long-term care insurance and home equity instruments.  This will reduce the confusion and frustration consumers and their families often face as they explore long-term care options. It will also improve government efficiency by integrating the multiple eligibility forms and procedures for various public programs that help finance long-term support options.    

Providing More Choices for High-Risk Individuals 

Choices will give states and communities greater flexibility under the Older Americans Act to help moderate and low-income individuals to remain in their homes and delay their premature entry into nursing homes. 

Choices will provide flexible funding that will be targeted at individuals, not at service categories as with the current titles under the Act. This will make it easier for states to respond to people’s individualized needs and preferences. It also will promote the use of consumer-directed approaches, including “cash and counseling” models which give consumers more control over the care they receive.   

Building Prevention into Community-Living

Choices will empower older individuals to make lifestyle changes that will reduce their risk of disease, disability, and injury.  There is a growing body of scientific evidence on the efficacy of low-cost programs that can empower older individuals, including functionally impaired individuals, to better maintain their health. These programs focus on interventions such as chronic disease self-management, falls prevention, exercise, and nutrition. 

Choices will strengthen the role of the Older Americans Act in translating research into practice by promoting the use of evidence-based health promotion and disease prevention programs at the community-level through local aging services provider organizations such as senior centers, nutrition programs, senior housing projects, and faith-based groups. 

The nation-wide deployment of these programs will improve quality of life, reduce health care costs, and complement the increasing focus on prevention in our health care system.

Implementing the Choices Demonstration 

Choices will provide competitive matching grants to states and will entail a rigorous program evaluation. Participating states will be required to track outcomes based on performance measures that will be established by AoA. 

Such measures may include promotion of consumer health and well-being, and reductions in the unnecessary use of costly hospital and nursing home care. 

AoA will establish a national technical assistance program for Choices to support state implementation activities.  Finally, AoA will involve the Centers for Medicare and Medicaid Services, the Centers for Disease Control and Prevention, the National Institute on Aging, the Agency for Healthcare Research and Quality, and other HHS agencies in the implementation of Choices.

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Alecxih, Lisa, et al. Wisconsin Family Care Final Evaluation Report, prepared for the Wisconsin Legislative Audit Bureau. 2003.  Link:  http://www.legis.state.wi.us/lab/reports/03-0FamilyCare.pdf

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Arno, P. S., Well-being of Caregivers: The Economic Issues of Caregivers. In T. McRae (Chair), New Caregiver Research. Symposium conducted at the annual meeting of the American Association of Geriatric Psychiatry, Orlando, FL. (February 2002).

Centers for Disease Control and Prevention, Costs Attributable to Falls (2004).  Link: http://www.cdc.gov/ncipc/factsheets/falls.htm

Cohen, Marc and Weinrobe, Maurice, Tax Deductibility of Long-Term Care Insurance Premiums (LifePlans Study for the Health Insurance Association of America, 2002).

Congressional Budget Office, Financing Long-Term Care for the Elderly, April 2004.

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