there. They have done a host of things. But I would like just to stress two of their current activities, one with the Veterans Administration, where they are giving of themselves to their fellows of like age. They realize the finest therapy in the world is stooping down and lifting someone else. Then their other activity in which they are absorbed is the preparation for the White House Conference. They felt proud that one of their number was asked to present the views of the association in that conference. They are trying to find realistic answers to the Nation's needs to find what are the things that America can do for her aged. Their report will not be sentimental; it will not be somber, pitiful, or gloomy. It will be a realistic story. In that connection it might be of interest to know that in St. Petersburg the week of January 18 we are holding a series of meetings for aged people on the needs of the aged, with 2,500 participants. We feel the aged best could answer, both as to their psychological and their material needs. We feel that the problem of material needs only you, America, could solve. But there are some things that we ourselves could do to help. Inflation, of course, is our cruelest absorption and terror; about that we can do practically nothing. But we can ask of you your help in some of the things that we need in the question of money, because after all our need is money-money in its two aspects, money in actual tangible cash and currency, and money that we can save by buying prudently and getting a better value for our money. First of all, we want for those who wish it the right to earn; to maintain that right. We feel that age discrimination is a cruel tragedy that robs older people of the right to earn, the right to give themselves the kind of living they should have, and at the same time hurts the national economy. We urge for opportunities for reemployment, and we earnestly protest the limitations that have been placed on social security beneficiaries. We feel very definitely that a man or woman between the ages of 65 and 71 ought to have the opportunity without limitation to earn. We feel definitely, too, that it is a tragedy for men and women under such enforcement to yield to the temptation to become petty criminals in making false reports to their Government on income tax or on the other hand becoming disgruntled wasters and loafers. We are interested, too, in asking for increased or equitable exemption from income tax report, and we petition for an increase in social security benefits that would allow our people with modest incomes to have the power to buy for themselves health protection. In that connection, Senator McNamara, I would like to refer to the testimony I made last week or a week ago before the Ways and Means Committee in connection with the Forand bill. We believe, all of us, that there should be provided health protection for our people. The only thing that keeps our people from realizing that dream is the method of getting that health protection and there we have opposing factions-irreconcilable opposing factions. Our solution is a compro mise. Our answer is the formation of trusteeships such as our own, with all segments of society represented; this trusteeship to ask the insurance industry, the Blue Cross and Blue Shield to compete against each other in the open market to provide the finest insurance cover age that can be had for the older people at the lowest possible rate; and then to make such protection available to all older people, not just the recipients of social security benefits as in the Forand bill but to all men of 65 and over, women of 62 and over, so they may profit by it, if they so desire. Then as a matter of economic operation on one hand and for the convenience of the members and the continuity of the service on the other hand, to ask congressional action to permit the Social Security Administration to process, for the trusteeship, without Government expense, the automatic deduction of this premium from the social security warrant for those requesting it. The only thing necessary to implement this plan would be for the administration of social security to be empowered, on the voluntary request of the beneficiaries, to withdraw from the monthly payments the premium amount. We want you to know that we are interested in doing things for ourselves that we can do. So in our study of this health problem, when we came upon the surprising fact that our people tell us that they are spending $10 a month on drugs alone, we felt that this was a challenge to us. In consequence we are offering to the 150,000 members of our association the right to buy drugs at a 25-percent discount. We realize this service is not going to save much money, but it is going to stretch that $10 and give it an equivalent of $2.25 purchasing power for something else. We want you to know, too, that in our nursing home, in our various activities, in our group travel for our people, and in our low-cost rental service and, as we hope to go into food, that we are trying to give our people something in value more than the current purchasing power of their dollar. We would like to have you know, too, that we have given our people under this same idea a budget-price group type of insurance, the first national insurance ever offered retired people. Senator MCNAMARA. Is this health insurance? Dr. ANDRUS. What? Senator MCNAMARA. Health insurance? Dr. ANDRUS. Health insurance. In 1954 we broke the barrier. We had tried for 5 years and had interviewed 42 insurance companies which had said to us that we were too old, the price would be exorbitant, and so on. We knew we were old and that was bad and because we were old we knew the answer was not final. So finally in 1954 we broke that barrier, and in 1955 we made our offering national. Just this August we are opening in California, as another experiment, a group health insurance that gives us protection not only as we have in the other, noncancelable by the insurer, giving permission for spouses, taking care of the present situation physically, but also care in nursing homes and doctors' visits in and out of hospitals, and drugs on a coinsurance plan. Those are the things that we are doing for ourselves in solving our problems. Our association, Senator McNamara, is strong in stature. It has grown in numbers, but it is growing because it has been an association of forward-looking self-service. We here offer you our real appreciation for your concern in this cause. We are very proud to give you in any way our support, all of our resources, and we thank you for this courtesy of appearing before you. 47461-59-6 Senator MCNAMARA. Thank you, Doctor. Your testimony is very helpful to the subcommittee, you can be sure. We appreciate very much having you here. I notice that you make a very firm recommendation for increasing the $1,200 allowable income outside of social security. We have had varied testimony on this item. Do you find a substantial number of your people are able to earn up to $1,200 a year? Dr. ANDRUS. It depends, Senator McNamara. Among the teaching group in some of the States there has been real liberalization of retirement. In the rural areas in the Deep South there is very much to be done. Just tragically this last week Governor Stratton revoked the bill that would give $100 to older people, teachers in Illinois. So when you answer that it depends. Our group is a great group. But it is a group that we are trying to make a responsible group. We challenge our members and let them feel that they are still in the field, for we know if we want to make ourselves beautiful and sentimentally sad that is our privilege, but also our death warrant. Senator MCNAMARA. Doctor, I think there are some areas, I have in mind some big city such as Detroit where I have attended meetings of your people, where there is almost no employment after 65. I wondered how much of a problem it was. Maybe some of your associates would like to comment on that. Dr. ANDRUS. Would you like to? Mr. Davis. From our experience, particularly in the teaching profession, we do feel that the teachers have an opportunity in various endeavors because of their training to earn in excess of $1,200 a year. Now that teachers are covered by social security this becomes a deterrent toward their getting, because some of them are not even on the maximum social security which becomes even a further deterrent, the wage limitation. If I might, Senator McNamara, I again would like to refer to the proposal that was submitted by Dr. Andrus before the Forand committee on the hospitalization for the aged. We have been studying this problem and have been pioneers in the problem of establishing a hospital-surgical-medical program for people over 65. We were the first to introduce such a program. We think that the solution to the problem of insuring the aged is basically a very simple one. The whole question is a question of dollars; what Forand is trying to do through his bill to provide an additional $6 a month in the form of social security benefits and then making it mandatory that each person take that and buy insurance benefits. The recommendation of our group is certainly to increase social security benefits because they are now inadequate to meet the necessities of living of our people, but then allow them voluntarily to select, through the auspices of the social security deduction a program of hospital-surgical insurance which can provide the same benefits that the Forand bill will provide and provide it for the same dollars that the Forand bill will provide, or $6 per month on an optional basis. We also pointed out that though hospital-surgical is the greatest insurance need, it only covers one-third of the total medical costs of our people over 65 and that there are other areas that have to be covered. But that the simple answer to the problem is to establish through a payroll deduction from the social security annuities check an amount and allow them to buy with this amount a proper hospital-surgical plan on nationwide scale which will eliminate the high acquisition cost now built into private insurance plans and which would be similar to the program recently passed by the Senate for the Federal employees where they would have optional plans to select on a payroll deduction basis. The biggest problem in the aged problem is that the people have lost the opportunity of payroll deduction which is necessary for this insurance. Senator MCNAMARA. Thank you. Dr. ANDRUS. Let me say something further. Dr. ANDRUS. I forgot that we definitely feel about the $1,200 limitation, I don't know if I spoke of that. Senator MCNAMARA. Thanks very much. Very helpful. STATEMENT OF GENEVA MATHIASEN, EXECUTIVE SECRETARY, NATIONAL COMMITTEE ON THE AGING Senator MCNAMARA. Next on our list is the National Committee on the Aging, Geneva Mathiasen, executive secretary. Mrs. MATHIASEN. Senator McNamara, good morning. I am here this morning because the chairman of our committee, Mr. G. Warfield Hobbs, who would normally represent the committee, is on holiday in South America and so he asked me to come and tell you briefly about the work of the National Committee on the Aging. I have a brief statement prepared and it is supplemented by an explanatory pamphlet which I would put into the record, and therefore I will not consume too much time in talking about the committee and its program but merely stress one or two things, and then I would like to put in two or three ideas which I am sure Mr. Hobbs would have liked to have done if he had been here. Senator MCNAMARA. Yes. Will you see that the recorder has copies of the pamphlet? We will make it part of the record. Mrs. MATHIASEN. Yes, thank you. (The prepared statement of Geneva Mathiasen follows:) PREPARED STATEMENT OF GENEVA MATHIASEN, EXECUTIVE SECRETARY, NATIONAL COMMITTEE ON THE AGING It is a privilege to appear before this Senate committee on behalf of the National Committee on the Aging. Appended to this statement is a printed brochure entitled "The National Committee on the Aging-What It Is What It Does." I shall summarize here very briefly the committee's function and explain how it serves the country in the field of aging and what it sees as some of the most urgent needs. WHAT THE COMMITTEE IS The National Committee on the Aging is a central, national resource for planning, information, consultation, and materials. It is made up of 250 members representing the many interests and concerns of older people. One-fourth are from business and industry. The others are from organized labor, health professions, social work, the clergy, education, housing, research, Government, and State and local committees on the aging. The National Committee on the Aging was organized at the request of communities, professional and civic groups, agencies of government and others who faced the pressing problems created by the growing number of older people in this country, and who recognized the need for more adequate planning and resources. It was organized in 1950 as a standing committee of the National Social Welfare Assembly, a nonprofit organization. The committee's support comes primarily from foundations and the assembly. In 1956, the Ford Foundation made an allocation to strengthen and broaden the basic program and to expand the information and consultation services. The professional staff now numbers 11 persons. Eight are employed in the basic ongoing program as follows: Executive secretary, administrative and research assistant, librarian, assistant librarian, consultant on community services, consultant on health, consultant on employment and retirement, and director of public information. In addition, there are three directors of special projects. AREAS OF PARTICULAR CONCERN TO THE NATIONAL COMMITTEE ON THE AGING The chairman of the committee, Mr. G. Warfield Hobbs, is particularly concerned with the economic aspects of aging, and the fact that so far the industrial community both management and labor are not generally aware of the importance to the economy as well as the individual of maintaining a higher buying power in the population 65 and over. Since the committee membership and staff represent broad areas of competence, they are well aware of the social, psychological, and health needs of older people as well as their economic needs. The committee has been concerned with assisting communities and organizations to develop programs which will enable older people to remain independent as long as possible, in the belief that for most older people this is their most cherished desire. The committee also continually collects reports of such programs. These reports indicate that thinking and action in the field of aging is moving forward. There is evidence of imagination, ingenuity, and resourcefulness on the part of many different kinds of individuals and organizations throughout the country. Programs indicate that we have some concept of the needs of older people and a vision of the network of services required to meet the needs. The fact remains, however, that there is not a community in the country that begins to provide this network of service in quality, or quantity to meet the need. Programs are spotty, and in many places, experimental, financed on short-term grants. To meet the need, a community requires a plan and mobilization of all the necessary resources. This community mobilization and overall planning constitute the next major step if we are to make a serious attempt to meet basic needs of older people. Planning of services alone is not enough, however. There must be plans for financing the services as well. This will have to be done at every level of government, by private philanthropy, and voluntary agencies the country over. Recommendations for planning and action have already come from hundreds of national, regional, State, and local meetings and conferences on aging. Many more can be expected from the meetings preparatory to the White House Conference on Aging and the conference itself. Unless these recommended programs are seen realistically in terms of cost and sources of financing, they will have very little practical result and may lead more to frustration than progress. The chairman of the National Committee on the Aging has frequently pointed out that old age is big business whether it is seen in the field of potential productivity of older workers, old-age and survivors benefits and private pension plans, health programs and care of the chronically ill, housing, or social services. For this as well as humanitarian reasons, the National Committee on the Aging is gratified to know of the thorough study being made by the distinguished members of this committee and its able staff. COMMITTEE PROGRAMS AND SERVICES There are two basic aspects of the committee's work. The first is the collection, evaluation, and dissemination of information. The second is identifying significant service areas where there is lack of understanding or interest or standards, and to take the necessary steps to try to change the situation. Information and consultation service This is the heart of the committee's program. With interest and activity developing as indicated in section I, community leaders seek information and guidance on many fronts. It is estimated that between the fall of 1956 and the end of 1959 the staff will have handled over 10,000 different requests for information and help. As the information and consultation service has developed, the staff has been increasingly impressed by the increase in the amount of serious consultation re |