STATEMENT OF MARY STOLZE

Mrs. STOLZE. My name is Mary Stolze. I am an ex-teacher, public health nurse, plus woman farmer. I have worked since I obtained employment between the years of 1913 and 1957, with the exception of one year just before my husband died and I have been working before and since.

I thank you very much that you have arranged this wonderful opportunity for the senior citizens to be heard and to give a true picture of their needs and problems. Though the senior citizens have many needs and problems, I also want to say that I am from the legislation club that studies the needs of senior citizens. I do give priority to the social security health plan, H.R. 4222, the King-Anderson bill, because there is an urgent need for it, and also I feel it is the only health plan for senior citizens so far that treats senior citizens like good citizens, as persons who have worked most or all of their lives and have made vast contributions to society and should be treated, a plan that preserves their dignity and gives them the security that they deserve. It is not based on need, which to them means sickness and charity, but instead it is a savings and insurance plan, at least to me, to be used when their earning days are over, the same as retirement plans are. It is a safer way to save for this purpose which is almost impossible to save for any other way.

Less than half of the aged have insurance of any kind. They either can't get it or they can't afford it.

The Kerr-Mills bill law is a tax law paid for through taxation by you and me and by a large number of our senior citizens who own homes and who have a tough time paying the increasing taxes to avoid losing their homes, yet senior citizens know the value of money and can budget until major illness strikes, and then they are penniless. Next follows a lien on their homes which gives them a feeling that the home is no longer theirs because there is practically no way of redeeming it at this age when their earning power ceases. No wonder statistics show that older people have two or three times as much hospitalization as young people do, especially those in the lower retirement income bracket. A shock like this can do it. We know that mental and emotional stress causes much illness. Legislation like the Kerr-Mills bill causes unhealthy attitudes among the senior citizens. They sign their homes and their possessions over to their friends and relatives who often leave them stranded. They are tempted to hide and spend their money to avoid having it snatched from them almost instantly when illness strikes.

Much of this could be avoided with the aid of a health plan like the social security plan, H.R. 4222, which would enable senior citizens to pay for their own health needs, rather than to be penalized and to be forced to accept charity through a taxation plan like the KerrMills bill and similar plans. Thank you.

STATEMENT OF ALMA SMALL, PRESIDENT, SENIOR CITIZENS CLUB

Miss SMALL. Senator Long, committee, and ladies and gentlemen, this is the testimony of Alma Small. I am the president of two senior citizens clubs. I am happy to be here, and give my wholehearted sup

port to the proposed bill H.R. 4222, which would provide medical care for the elderly people under social security. Little has been done to help those on social security. I was one of the first ones to sign up on social security back in 1936 and started paying in 1937. They made it a law. It was a compulsory law then that the employer hold back a small percentage of our wage to pay into this new social security plan. It was a compulsory plan, and that is the way we want it.

Why can't we have a compulsory plan to take care of our senior citizen who now needs medical care? Medical and hospital insurance keeps raising the rates until we can't afford to keep them up.

In 1936 I was paying 75 cents a month for Blue Cross; now I am paying $100 a year. In 1957 the Blue Cross and Blue Shield together was $17.10. In January of 1959 the cost raised to $20.40; in December 1959, $23.10; in February 1960 the Blue Cross alone was $16.05. In December 1960 the Blue Cross raised to $19.50. Now 1 year later, it raised another $4 which is $23.10.

Living expenses have gone out of sight and we don't have that weekly income any more.

Senator LONG. Are those figures per month or what?

Mrs. STOLZE. Per quarter.

I also think the minimum payment of social security should be raised to at least that of the old-age assistance program in this State, which is paying $71 per month with free medical expenses.

I started working for myself in 1943, and at that time we paid no social security on ourselves, and I never heard tell of freezing the wages, so the average of my wages went over a number of years. Now I get $47 social security and that doesn't go very far these days. So I say raise the minimum of social security as well as the proposed bill H.R. 4222. I appreciate you coming here to hear us. Thank

you.

STATEMENT OF LUCY COBB, MINNEAPOLIS FEDERATION OF

SETTLEMENTS

Miss COBB. Senator Long and members of the subcommittee, my name is Lucy Cobb and I speak for the Minneapolis Federation of Settlements.

We consist of seven settlement houses in Minneapolis. We have clubs for social and educational groups of older people throughout the city. We know how badly services are needed to compensate for the devalued dollar. Hospital services here were the highest in the country. Savings were quickly used up, and rates of insurance made policies prohibitive with fixed incomes.

There is need for medical insurance on the basis of social security. The Federation of Settlements favors the passage of the King-Anderson bill as the fairest way to solve this problem for our entire population after retirement.

Thank you very much.

STATEMENT OF HELGA FLYNN

Miss FLYNN. My name is Helga Flynn. I would like to speak to you for medical insurance as provided in H.R. 4222.

There are many senior citizens who have worked hard all their lives for small wages and haven't been able to accumulate a large bank account. They have tried to keep up their medical insurance, but the prices have been raised so high in the last 5 years that many have had to drop their insurance.

In 1956 when I quit work on account of my age, the cost was $16.50 for 3 months for doctor and hospital; now it has raised to $33 and some cents for 3 months. And when I paid $16.50 it was a $25 deductible insurance. Now I have to pay 20 percent of all hospital bills. No wonder the old folks are getting worried about what they are going to do to pay their bill. Thank you.

STATEMENT OF MARY HEGG, LEGISLATIVE CLUB

Miss HEGG. I am Mary Hegg. I am representing the Legislative Club.

The root of my troubles started during the depression. It put me in the hospital for 7 months. After many years of chronic heart trouble my husband passed away in 1947. Five years ago my little brother died after suffering from a chronic arthritic condition. Then last year I had the responsibiilty of caring for until death one of my lodge members. You wouldn't believe how expenses can mount through the years of illness. Returning home I found an eviction notice; the building in which I lived was to be razed and only 2 weeks in which to get ready to move. It was the middle of winter. To find a place I answered ads, telephoned, advertized, and walked miles looking and found nothing suitable for what I could afford to pay. You should be surprised at what I was shown. Some people do not know how the other half lives. Due to high rents many were using their apartments in day and night shifts. Tenants were to do their own decorating, rents were exorbitant, a $35 apartment is now $85. The simplest apartment is over $100. It was indeed disheartening not to find a reasonably decent place. I was utterly discouraged, as moving day was near. Finally a friend advised me to send my eviction notice to the development authorities. Their response was immediate and they gave me a choice of an upper or lower apartment. I chose first floor, brand new, warm as toast, with three picture windows looking over a spacious lawn. You can't know what a relief this was to have a place at last.

But my worries were not over and the building in which I lived was already being demolished. I simply had to get out. What stared me in the face were accumulations of years. There were grandmother's cherished things, mother's precious possessions, as well as my own. My new apartment being small, I had to dispose of loads of stuff, give much away and sell for little or nothing. My $1,600 mahogany dining room set went for $35; an almost new oriental rug, $300; authentic oils for a song, as did my Limoges Belgium china and other imports. Even now I miss some of my nice things, especially my baby grand piano. But I really don't mind as there are many in the same boat with me and not nearly so lucky.

I wish to say that I am grateful to the housing and development authority for my reasonably nice apartment. I hope they will build thousands. Ours is a rich, vast country with unlimited resources and

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with good management every good citizen throughout the land desires a comfortable home.

Right here I want to thank the housing authority for giving me a lift when it was most needed.

In closing I wish to thank our honored guests for what they have done and what they will be trying to do for our senior citizens. Thank

you.

Senator LONG. From here on we are going to have to stick rather closely to our 2-minute rule. Our time is fast running out. We want to give everyone an opportunity to be heard and I am going to ask my assistant here on my right to keep time. We will appreciate it if you will cease as the 2 minutes are up.

STATEMENT OF MRS. OSCAR MALVICK, CHAIRMAN, AIKEN COUNTY COMMITTEE ON AGING

Mrs. MALVICK. Senator Long, I was born down in the Ozarks, Springfield, Mo., but now I am from the Jack Pine country, north of here about 130 miles. I am Mrs. Oscar Malvick. I am chairman of the Aiken County Committee on Aging.

I think enough has been said about the health insurance. We have a day center we haven't paid for. We have a hostess 6 days a week One day we have hobbies, another day music, another day pictures, another day birthday clubs. Now, what we are trying to do is prevent them from going into nursing homes, and we know of four, if it hadn't been for this day center, would have been committed.

We have organized four golden age clubs over the country and last Saturday they sold their hobbies, those that had made hobbies, they sold them. We also had a food sale, and through the cooperation of our county commissioners our very efficient social welfare leader, and our businessmen and the different organizations, we have about $4,500 in this day center and we have money on hand. We have still got to keep raising money in order to keep this going. But it is gratifying to know that these older people, this is what they need. Finance is what makes a lot of people sick. I know during the depression of 1929 and 1930 we were almost wiped out. And my husband and myself he is 70 today he is still working, neither one of us has taken social security. We will when the time comes when we have to. But I don't think there is enough consideration given to our talented old people. Thank you.

STATEMENT OF MRS. E. M. DESSLOCH

Mrs. DESSLOCH. Senator Long, members of the committee, I am Mrs. E. M. Dessloch from Wisconsin. I manage two nursing homes in that State.

There does not seem to be any problem as far as finances are concerned. We have both private and welfare patients. The private patients take care of themselves and any needy patients are taken care of by the local welfare department. The nursing care is excellent and there is a good recreational program. The surroundings are pleasant and the patients appear happy and contented. As I have already stated, there does not seem to be a great problem. Thank you.

STATEMENT OF MRS. E. M. RUSTEN

Mrs. RUSTEN. I am Mrs. E. M. Rusten, Wayzata, Minn. I am a registered nurse and have done work in the field of social welfare for 20 years, this is public housing, medical problems of the aged and supervising the aged.

I recognize that there are unmet medical needs for our senior citizens. I believe this is a State responsibility to care for these unmet needs and only financial assistance should come from the Federal Government, regulatory powers should remain with the States. Provisions for such action are made possible through the Kerr-Mills law. I see no further need for legislation in this field.

I defend my position in opposition to Federal Government as citing, for example, the experience here in public housing. Here is an example of what happens when regulations come from the Federal Government: 15 years ago I spent much time getting permissive legislation for public housing in the State of Minnesota. What is the situation today in Minneapolis? Hundreds of our aged on old age assistance, receiving $71 a month, for whom public housing was originally designed, are living in substandard housing while people with over 312 times this income are permitted to live in public housing. This is inequitable.

I consider it a privilege to have this opportunity to air my views.

STATEMENT OF T. A. GUSTAFSON

Mr. GUSTAFSON. T. A. Gustafson, living in Minneapolis, former teacher and insurance man. I am happy to be here.

I have been on the legislative committee for the last month or two and in that capacity I have learned a great deal about all of these organizations that have been discussed this afternoon.

I am reminded of the story, in which you all remember, regarding the four blind men who came upon an elephant. After feeling of the elephant they afterward discussed what the elephant is like. You know the story, one felt the leg and said he was like a tree; the other felt his side and said he was like a house, and so forth. You know the story. We are also happy to live in a country where free speech still prevails. We are also encouraged to express our convictions on controversial questions, as I have been led to understand this meeting is for the purpose of letting our leaders hear from the grassroots, so to speak.

I assume you are all familiar with the provisions of the Kerr-Mills bill passed by the Congress of the United States. Under this bill the U.S. Government would aid the States in a financial way. Minnesota could or would have benefited to the amount of $200,000 this past year if Minnesota had accepted it, that is, by the legislature. Now, that is gone for this past year but it could be taken up again. The amount is determined by the services each State elects to provide. This would put the administration of this bill under State control instead of the U.S. Government at Washington. At present more than half of the States are implementing this bill in some form or other. Thank you.