Retirement Living News

August 2005

HEADLINES  (Click on headline to read story)

* Portland, OR. Tops List of 50 Best Cities for Seniors
* Australia and New Zealand Now Approved by Five States for Drug Importation
* New Medicare Drug Program Begins in January
* Census Bureau report Ranks Cost of Housing Across the U.S.
* Assisted Living Facility to be Added to The Villages, Florida

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Portland, OR.  Tops List of 50 Best Cities for Seniors 

A new survey conducted for Bankers Life and Casualty Company reveals Portland, Ore. is the best city in the United States for senior living with Seattle, San Francisco, Milwaukee and Pittsburgh rounding out the top five. The survey was conducted by veteran survey administrator Sperling's Best Places (www.bestplaces.net) and identified the top 50 metro areas in the U.S. The bottom five, out of a list of 50, were: Riverside-San Bernardino, Calif., Orange County, Calif., Nassau and Suffolk Counties, N.Y., Miami, Fla., and Bergen and Passaic Counties, N.J. 

A panel of experts on gerontology and senior issues identified the qualities needed for optimal senior living. Major categories were: health, disease, economics, social, environment, spiritual, transportation, housing, and crime. Each category was statistically weighted to reflect the needs of the senior population.

"We find the survey results contain some cities we don't often associate with senior living," said Bankers' Chief Operating Officer Scott Perry. "That's because we weren't looking for the best places to be retired, but the best cities for seniors regardless of whether they are retired, working, active or not, healthy or not. It's about more than golf courses and tennis courts," he said. 

Categories for the survey included the following: 

Health included criteria such as physician to senior ratio, gerontologist to senior ratio, hospitals per capita, and availability of adult day care, assisted living facilities, continuing care retirement communities (CCRC), independent living facilities, nursing homes, and senior meals. 

Housing included cost of living, median home price, property taxes and monthly apartment rent. 

Transportation included public transportation, special access transportation, and commuting times. 

Social included the percentage of seniors, entertainment, the arts, museums, education, recreation, colleges, and libraries. 

Crime included violent crime and property crime. 

Environment included sunny days, clean air, clean water, natural disaster risk, ocean coastline, rivers and lakes, and national parks. 

Economy included consumer prices, sales taxes, unemployment rate, and recent job growth. 

Disease included life expectancy, age 85 expectancy, depression rate, heart disease, and cancer rates. 

Spiritual included percent of population belonging to organized religions and the number of religious congregations

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Australia and New Zealand Now Approved by 
Five States for Drug Importation

Illinois and Wisconsin announced plans last month to expand the I-SaveRx prescription drug importation network to include Australia and New Zealand. The expansion comes on the heels of a comprehensive study conducted by Illinois' Prescription Drug Advocates into the safety and savings of prescription drugs in Australia and New Zealand. Three other states - Kansas, Vermont and Missouri - also participate in the program. 

The recently released advocates' report shows that the pharmaceutical systems in the two countries are safe and could provide significant savings averaging around 51 percent compared to prices in the United States. These savings are said to be better than the savings available from Canada where the same medications cost 32 percent less than in the U.S. 

"The I-SaveRx program - www.I-SAVErx.net -- is growing and building as more people find out that they can get the medications they need at prices they can afford from state-inspected pharmacies outside the United States. But as we build momentum, the drug companies and their allies are turning up the heat in Canada, which has been the primary point of purchase for millions of Americans," according to a joint statement by Illinois Governor Rod R. Blagojevich, and Wisconsin Governor Jim Doyle. 

The Canadian government is considering new restrictions on prescription drug exports. "We've known for some time that a sound importation program can't rely solely on Canada. That's why we originally included the United Kingdom and Ireland," the governors said. After an extensive review officials concluded that pharmaceuticals purchased from approved facilities in Australia and New Zealand are safe, effective, and more affordable than pharmaceuticals purchased in the United States. Safety standards in these countries met or exceeded those required by the State of Illinois.
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New Medicare Drug Program Begins in January

Beginning January 1, 2006, all people with Medicare will be able to get coverage for prescription drugs and those with limited income and resources will be able to get extra help. This is the most sweeping change in the Medicare program since it started 40 years ago. Every person on Medicare is eligible for this new benefit no matter how they currently get their health care, or how much money they have or earn. But to receive it you have to sign up with special prescription drug plans that will contract with Medicare. Here's how the program works: 

Most Medicare beneficiaries will have to pay a premium, deductible, and coinsurance for the new drug coverage, as they currently do for other Medicare services. The premium for the standard benefit is expected to average around $37 dollars a month. The annual deductible is $250 dollars, and the coinsurance, or required share that the beneficiary pays, is 25 percent of the next $2,000 dollars in drug costs. 

People whose drug costs run higher than this amount will be responsible for paying the full amount until they have spent $3,600 out of their own pockets. But after this expense is reached, Medicare catastrophic drug coverage kicks in and Medicare will pay 95 percent of all additional drug costs during that calendar year.

The prescription drug plans may differ in a number of ways. All plans are required to provide a standard level of coverage set by Medicare. But plans can vary in terms of which specific drugs are covered, how much you have to pay, and which pharmacies you can use. Some plans may offer an enhanced coverage package for a higher monthly premium. When you join a drug plan, it is important for you to consider all these variations and choose a plan that best meets your needs. 

Many prescription drug plans are applying for the right to provide this new benefit on Medicare's behalf. The list of approved plans will be announced in October. If you choose one before December 31, you'll be able to have the new drug coverage starting on January 1, 2006. Next year, you will have until May 15, 2006 to choose a drug plan at the lowest available premium. 

If you do not make a choice by May 15, 2006, you will have to wait until the next open enrollment period in November 2006 and pay a higher premium. For more details, check out these resources. 

Quick Facts about Medicare's New Coverage for Prescription Drugs-- http://www.cms.hhs.gov/PrescriptionDrugCovGenIn/ 

Quick Facts about Medicare's New Coverage for Prescription Drugs for People who have Prescription Coverage from an Employer or Union.-- http://www.medicare.gov/Publications/Pubs/pdf/11107.pdf 

Do You Have a Medigap Policy with Prescription Drug Coverage?-- http://www.medicare.gov/Publications/Pubs/pdf/11113.pdf 

Quick Facts about Medicare's New Coverage for Prescription Drugs for people with a Medicare Health Plan with prescription drug coverage-- http://www.medicare.gov/Publications/Pubs/pdf/11135.pdf
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Census Bureau Report Ranks Cost of Housing Across the U.S. 

As the cost of homes continues to rise, many retirees are concerned about where they might be able to afford to live in retirement. A key factor is the cost of housing. An analysis of American Community Survey (ACS) data recently released by the U.S. Census Bureau found that the national median home value in 2003 was about $140,000, up nearly 16 percent in the last three years. During this period the percentage of million dollar homes has nearly doubled (from 0.5% to 1.0&). [The median home value means that half of the homes are less than the value shown and half are more.] 

California led the nation with the highest median home value ($316,600), followed closely by Hawaii ($302,300), Massachusetts ($300,800) and the District of Columbia ($246,300). In contrast, some of the states with the lowest median home values were West Virginia ($78,200), North Dakota ($78,600), Mississippi ($78,700) and Arkansas ($79,902). (See state ranking table.) Since 2000, the states that have experienced the largest increases in median housing value are: Massachusetts (50 percent), California (46 percent), the District of Columbia (44 percent), New Hampshire (41 percent) and Rhode Island (39 percent). 

California also had the highest percentage of million-dollar homes (4.1 percent) - almost 1-in-25. High concentrations of million-dollar homes were also found in Connecticut (3.3 percent), the District of Columbia (3.3 percent), Massachusetts (2.2 percent) and New York (2.1 percent). (See million-dollar ranking tables: by number of homes and percent of million-dollar homes.) 

Of the 231 counties with populations of 250,000 or more included in the ACS, San Mateo ($644,300), San Francisco ($607,000), Santa Clara ($553,500) and Santa Cruz ($553,000) - all in California - had some of the highest median home values. Among counties with the least expensive homes were Hidalgo, Tex. ($54,000); Jefferson, Ark. ($61,900) and Cameron, Tex. ($62,800). (See county ranking table.) 

San Francisco ($607,000) had the most expensive median home values among the 69 large cities with populations of 250,000 or more in 2003. Also among the highest were three other cities in California - San Jose ($481,000); San Diego ($376,800) and Oakland ($370,000). (See place ranking table.) 

Other highlights: 

• Among the counties with the highest median housing values, eight were in California. 
• Among states with the lowest median housing values, seven were in the South: West Virginia ($78,201); Mississippi ($78,681); Arkansas ($79,902); Oklahoma ($83,525); Alabama ($87,203); Louisiana ($90,168); Kentucky ($92,599) and Texas ($94,515). 
• Six Northeastern states were among those with the highest percent increase in housing values. 
• Florida, one of the fastest growing states in the nation, was also one of the states with the largest percent increases in housing values. 

The American Community Survey data are based on responses from a sample of households across the nation. The home value is the respondent's estimate of how much the property (house and lot, mobile home and lot or apartment) would sell for if it were for sale. In this report, estimates of median home value are based on all owner-occupied units.
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Assisted Living Facility to be Added to The Villages, Florida

The Villages, Florida, an active adult community located near Orlando, will soon add a 60-bed skilled nursing center and 240 independent living units which will be located next to a free-standing 47 unit assisted living facility. American Retirement Corporation, a leading provider of senior living housing and care, will own and operate the facility. Construction is due to start at the end of the year. It is expect to open in 2007. At a later date ARC plans to build 120 additional independent living units. 

Located a hour north of Orlando, The Villages, Florida has been offering active adult living for 25 years and is currently home to over 40,000 residents. It is so large that it has its own Zip code and is said to be one of the fastest growing communities in Florida. "Given the focus on quality living and commitment to excellence that is the hallmark of The Villages, it is natural that we expand our operations from a highly successful free-standing assisted living community into a full-service retirement center," said Bill Sheriff, Chairman, President and CEO of American Retirement Corporation
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