Pennsylvania’s ‘master plan’ for aging residents comes at a high cost

By Lauren Jessop | The Center Square contributor

HARRISBURG, PA – The confluence of a growing senior population and a declining number of working age people continues challenging Pennsylvania’s economy.

In a trend that has only grown more complex in recent years, the state must manage an increased demand for services, and how to best provide them.

To get ahead of the issue, Gov. Josh Shapiro’s proposed budget includes increased funding to support a 10-year master plan being developed by the Department of Aging for programs meant to keep costs down and strengthen its Area Agencies on Aging.

These investments, Acting Secretary Jason Kavulich says, come at a high cost, but ensure older residents get to live and age in their homes and communities – safely, with the dignity and respect they deserve.

Additional lottery funding has been requested for the $10 million increase for the Area Agency on Aging network, and $1 million in senior center grants. Kavulich says this will help reduce waiting lists for services included in the department’s OPTIONS Program, increase support for senior community centers, and assist adults with staying in their homes.

He said they are looking at new ways of doing things, suggesting for example, a $10,000 “modification investment” in a person’s home to refit the bathroom would prevent them from having to go to a nursing home.

Kavulich testified that income limits have remained the same since 2006 and older adults on tight budgets are being impacted by inflation – threatening to push them out of their homes.

The governor’s proposal calls for increased funding of the Property Tax Rent Rebate Program, which would expand income eligibility and increase the maximum rebate amount, benefitting over 570,000 elderly and disabled Pennsylvanians.

Rebate caps would increase from $650 to $1,000, and income caps for homeowners and renters would increase to $45,000 – up from $35,000 and $15,000 respectively. The proposal also calls for increasing the income cap to grow with inflation according to consumer price index growth beginning with the claim year 2024.

Rep. James Struzzi, R-Indiana, concerned these provisions would not take effect until July 2024, asked Kavulich to work with the administration to expedite the process.

“Seniors need help now,” Struzzi said. “They can’t wait for another year – people are going to lose their homes.” Kavulich answered they would gladly be a part of any conversation that “helps move the needle forward quicker.”

The proposed budget addresses food security with an increase in the minimum Supplemental Nutrition Assistance Program benefit.

Eligible seniors’ minimum benefit would increase from $23 to $35, which Kavulich said is critical given inflation, the rising cost of groceries, and SNAP emergency allotments that ended in February.

He called the state’s 517 senior centers a lifeline for older residents and said they receive $7 million worth of grant requests annually for a program that is currently funded at $2 million.

Several lawmakers wondered whether the additional $1 million budget request would be sufficient – to which Kavulich said he believes the governor’s office has worked with them and established the beginning of a conversation to move forward.

A question was raised regarding the Pharmaceutical Assistance Contract for the Elderly moratorium, set to expire in December.

PACE Director Tom Snedden said legislation, enacted in 2019 and extended in 2021, allowed 10,000 people to maintain their prescription drug benefits despite disqualifying increases to their income from Social Security cost of living adjustments.

Snedden said the moratorium’s expiry would result in half of those people losing their coverage entirely, and the other half would move from PACE to PACENET. He said 20,000 people would be impacted by the 8.7% Social Security cost of living adjustment next year. Additional legislation will be required for further extensions.

Kavulich spoke of endless possibilities and exploring innovative ideas under their OPTIONS and SHARE programs, such as retirement communities and ECHO cottages, which are small, separate, residences temporarily placed on the property of a friend or relative’s home.

“Please be assured that we are here to do what is best for older Pennsylvanians, to make sure that we make a mark on their lives,” he said.