II. EMPLOYMENT A. AGE DISCRIMINATION 1. Section 715 of Public Law 88-352 (approved July 2, 1964), the Civil Rights Act of 1964, directs the Secretary of Labor to "make a full and complete study of the factors which might tend to result in discrimination in employment because of age and the consequences of such discrimination on the economy and individuals affected," and to file with Congress not later than June 30, 1965, a report of the results of such study, including "recommendations for legislation to prevent arbitrary discrimination in employment because of age." 2. An amendment to the civil rights bill to prevent discrimination in employment due to age was offered on the Senate floor by Senator George A. Smathers, chairman of the Senate Special Committee on Aging. If adopted, it would have added "age" to the bases for employment discrimination to be prohibited by the bill ("race, color, religion, sex, or national origin"). On June 11, 1964, it was defeated by a rollcall vote of 63 to 28. 3. A similar effort by Congressman John Dowdy on the House floor was defeated on February 8, 1964, by a vote of 123 to 94. 4. On February 12, 1964, President Johnson signed Executive Order 11141, which declares a public policy against employment discrimination on the basis of age. The order declares that it is the policy of the executive branch that contractors and subcontractors performing Federal contracts shall not practice employment discrimination against persons because of their age except upon the basis of a bona fide occupational qualification, retirement plan, or statutory requirement. The head of each department and agency is directed to take appropriate action to enunciate this policy, and appropriate amendments are directed to be made to Federal Procurement Regulations and the Armed Services Procurement Regulation. B. INCREASING EMPLOYMENT OPPORTUNITIES FOR THE ELDERLY 1. Hearings were held by the Subcommittee on Employment and Retirement Incomes, the Senate Special Committee on Aging, as follows: Washington, D.C., December 19, 1963. As a result, a report including recommendations for increasing employment opportunities for the elderly was subsequently approved by both the subcommittee and the Special Committee on Aging. 2. The President's Council on Aging in February 1964 published a report with recommendations on employment of the older worker. 3. The President's budget for fiscal year 1965 included two items to assist in placing older workers in employment: a $342,000 appropriation increase for additional older worker specialists in local employment offices and a $1,288,000 item for the first year's operations of a part-time employment service. H.R. 10809, the 1965 Labor and Health, Education, and Welfare appropriation bill, as passed by the House, failed to provide the funds for these items. The Senate restored the necessary funds, but they were again deleted in conference. 4. Hearings were held by the Subcommittee on Employment and Manpower of the Senate Committee on Labor and Public Welfare on the overall subject of employment and manpower. As a result, the subcommittee during April 1964 issued a report with recommendations for a comprehensive employment and manpower policy in the United States, including recommendations regarding older workers. 5. Title V of the Economic Opportunity Act of 1964 (Public Law 88-452, Aug. 20, 1964) authorized funds for experimental pilot or demonstration projects providing work and training for low-income families, including present and potential old-age assistance recipients. 6. Two demonstration projects on placing older workers in employment were begun during 1964 by the National Council on Aging with funds from the Office of Manpower, Automation, and Training of the Department of Labor. These projects are being conducted in South Bend, Ind., and Milwaukee, Wis. Five other projects of this type in Boston, Mass.; Cleveland, Ohio; Lansing, Mich.; Asheville, N.C.; and Baltimore, Md.; are expected to be initiated before the end of 1964. 7. Public Law 88-448 (August 19, 1964) permits a retired officer of any Regular component of the uniformed services whose retirement is based upon length of service to be employed in a Federal civilian position. It also permits all retired Regular officers to receive the full pay of Federal civilian positions they hold, but requires that their retirement pay be reduced to an annual rate equal to the first $2,000 of retirement pay plus one-half of the remainder. This increases the total which can be received from both sources. C. LIBERALIZING EARNINGS LIMITATIONS 1. An amendment to H.R. 11865 (Social Security Amendments of 1964) was adopted on the Senate floor on September 2, 1964, which would have liberalized the amount of earnings which could be received by a social security recipient under the age of 72 without loss of benefits, as follows: PRESENT LAW SENATE AMENDMENT a. Benefits withheld from a a. $1 in benefits would have beneficiary under 72 (and from been withheld for each $2 of any beneficiary drawing on his annual earnings between $1,500 record) at the rate of $1 in and $3,000 and $1 in benefits benefits for each $2 of annual withheld for each $1 of annual earnings between $1,200 and earnings above $3,000. $1,700 and $1 in benefits for each $1 of annual earnings above $1,700. b. Benefits not withheld for any b. Limit raised from $100 per month during which the individual month to $125. neither rendered services for wages in excess of $100 nor rendered substantial services in a trade or business. 2. An amendment to H.R. 11865 was adopted on the Senate floor on September 3, 1964, which would have liberalized the amount of earnings which & State may disregard in determining the need of a recipient of old-age assistance, as follows: PRESENT LAW SENATE AMENDMENT Of the first $50 per month, a Of the first $80 per month of State may disregard up to the earnings, a State would have been first $10 completely, plus half of allowed to disregard up to the the remainder ($30 of the first first $20 completely, plus half of $50). the remainder ($50 of the first $80.) III. FRAUDS AND MISREPRESENTATIONS A. HEALTH FRAUDS AND QUACKERY 1. Hearings on the general subject of health frauds and quackery were held by the Subcommittee on Frauds and Misrepresentations Affecting the Elderly, Senate Special Committee on Aging, as follows: San Francisco, Calif., January 13, 1964. Washington, D.C., March 9, 1964. Washington, D.C., March 10, 1964. 2. A hearing on eye care frauds was held by the Subcommittee in Washington, D.C., on April 6, 1964. B. INTERSTATE MAIL ORDER LAND SALES Three hearings were held by the Subcommittee in Washington, D.C., on May 18, 19, and 20, 1964, respectively. C. DECEPTIVE OR MISLEADING METHODS IN HEALTH INSURANCE SALES The Subcommittee held a hearing in Washington, D.C., on May 4, 1964. D. PRENEED BURIAL SERVICE The Subcommittee held a hearing in Washington, D.C., on May 19, 1964. NOTE. On October 3, 1964, a report was being drafted based upon the hearings during 1964 of the Subcommittee on Frauds and Misrepresentations Affecting the Elderly and other information reaching the Subcommittee's attention. 5 IV. HEALTH A. SOCIAL SECURITY-FINANCED HOSPITAL INSURANCE 1. The House Ways and Means Committee held hearings in November 1963 and January 1964 on various proposals (including the King bill-H.R. 3920) designed to finance hospital insurance through the social security system. No action was taken by the committee on any of these proposals. 2. The Senate Finance Committee, subsequent to the completion of hearings in August 1964 on H.R. 11865 (Social Security Amendments of 1964) by majority vote decided against acceptance of any amendments designed to add social-security-financed hospital insurance to the bill. 3. On September 2, 1964, the Senate, by a vote of 49 to 44 approved the Gore amendment to H.R. 11865, which would have added a hospital insurance plan to the social security program. Benefits to be provided were essentially those included in the King-Anderson bill (S. 880 and H.R. 3920). 4. The conference committee appointed to reconcile the difference between the Senate and House versions of H.R. 11865 did not reach agreement and no further action was taken on the bill prior to adjournment. B. OLD-AGE ASSISTANCE AND MEDICAL ASSISTANCE FOR THE AGED The Senate adopted amendments to H.R. 11865 which would have made the following changes regarding medical benefits under the old-age assistance and medical assistance for the aged (Kerr-Mills) programs: 1. Remove the prohibition against payments to persons in mental or tuberculosis institutions, with safeguards to insure that the additional Federal funds provided would have provided better care for the afflicted individuals, rather than serve as a replacement for State funds now being expended for this purpose. 2. Modify the definition of medical assistance for the aged to allow Federal sharing as to old-age assistance recipients for the month they are admitted to or discharged from a medical institution. C. MEDICAL FACILITIES 1. Public Law 88-164 (October 31, 1963), the Mental Illness and Retardation Act, authorized Federal grants to the States for the construction of community mental health centers. 2. Public Law 88-443 (August 18, 1964), amendments to the HillBurton Act, increased the authorization of funds for the construction of nursing home and other long-term care facilities from $40 million to $70 million annually. 3. Public Law 88-450 (August 19, 1964), authorized the Administrator of Veterans' Affairs to establish and operate not less than |