Sequestration and Senior Citizens: How Will Budget Cuts Affect the Elderly?

What is sequestration?

On March 1st our government plans to cut about $85 billion in across-the-board spending for a wide variety of goods and services that many of us consider essential. These mandatory cuts are known as budget sequestration. Even if Congress and the President somehow agree on how to avert sequestration, the agreement they reach instead is still very likely to include painful cuts for some of the neediest elements of our society.

Among other things, these exercises give us a picture of which of our neighbors will suffer the most when push comes to shove – whether the sequester goes forward or not.

First of all, Social Security and Medicaid will not be affected by the sequester itself. But as Certified Financial PlannerMitchell E. Kauffman points out, “Medicare will face a 2% reduction in Medicare payments to providers. This could result in doctors turning down Medicare patients.”

Senior savings are really losses

Many point out that denying funding to senior programs doesn’t save any money in the long run. TheLeadership Council of Aging Organizations (LCAO), a coalition of senior-focused non-profits, says: “Any ‘savings’ from the sequester would pale in comparison to the added costs resulting from premature nursing home placement for seniors who can no longer stay in their homes and communities because of reduced federal funding.”

Mark Zilberman, Geriatric Care Manager at NorthStar Care and Guidance in New York City, is particularly concerned about the effect of cuts in the popular “Meals-on-Wheels” program, which the LCAO estimates will result in 17 million fewer meals being delivered seniors and shut-ins. This is about more than food, he says: “Often the Meals-on-Wheels worker is the only person who sees a senior citizen on a regular basis, making them an important part of the person’s safety net. They’re trained to take action when they notice anything amiss.”

Zilberman is also concerned about the effects upon seniors losing rides to medical appointments, grocery shopping, and other needs. The LACO estimates that there will be 1.9 fewer such rides if sequester cuts go into effect.

See the rest of the story at NerdWallet by clicking here.