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An Uptick in Elder Poverty: A Blip, or a Sign of Things to Come?

“We’re getting more and more older people who lived through this experiment with do-it-yourself pensions, and they’re coming into this age group without the same kind of incomes that older people have,” said Teresa Ghilarducci, an economics professor at the New School who specializes in retirement policy. “I don’t think it’s a blip.”

Even though the share of elderly people officially below the poverty line is low by historical standards in the United States, it remains among the highest in the developed world, according to the Organization for Economic Cooperation and Development. The average poverty rate for older Americans also masks far higher shares among more vulnerable groups, with nearly one in five Black and Hispanic women 65 or older falling below the official poverty threshold in 2021. It’s higher for single people, too — a reality forced on hundreds of thousands of older Americans whose spouses died of Covid-19.

The poverty rate is also not a bright line when it comes to financial hardship. It doesn’t take into account debt, which more seniors have accumulated since the Great Recession. Moreover, nearly one in four people 65 or older make less than 150 percent of the federal poverty line, or $19,494 on average for those living alone. Another measure, developed by the Gerontology Institute at the University of Massachusetts Boston and called the Elder Index, finds that it takes $22,476 for a single older person in good health with no mortgage to cover basic needs, with the cost escalating for renters and those with health problems.

“To some extent we’re splitting hairs when we talk about people who fall just above and just below, because they’re all struggling,” said Jan Mutchler, a demographer at the University of Massachusetts at Boston who helped devise the Elder Index. “The assumptions that go into what we’re calling hardship are just flawed.”

That’s true for Juanita Brown, 77, who lives on her own in Galax, a small town in Virginia’s Blue Ridge Mountains. A farmer’s daughter, she worked as a nanny, and then a certified nursing assistant, and then a preschool teacher. Her husband worked in the local textile industry, and after raising two children, they had built a substantial nest egg.

But then Ms. Brown’s mother developed Alzheimer’s disease and couldn’t support herself. Ms. Brown stopped working to take care of her, which cost another $500 per month in expenses. Her husband got prostate cancer, which required extended trips to the hospital in Winston-Salem, N.C.

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U.K. Borrowers React to Soaring Interest Rates in Mortgage Market

LOUGHTON, England — After nearly two decades of renting in one of the world’s most expensive cities, the Szostek family began the week almost certain that they would finally own a home.

Transplants to London who fell in love as housemates, Laetitia Anne, an operations manager from France and her husband, Maciej Szostek, a chef from Poland, had long dreamed of being homeowners. They had waited out the uncertain pandemic years and worked overtime shifts to save up for the deposit for a mortgage on a three-bedroom apartment in a neighborhood outside London. Their 13-year-old twins were excited they could finally paint the walls.

That was before British financial markets were upended, with the pound briefly hitting a record low against the dollar on Monday and interest rates soaring so rapidly that the Bank of England was forced to intervene to restore order. The economic situation was so volatile that some mortgage lenders temporarily withdrew many products.

By Tuesday evening, the Szostek family learned the bad news: The loan that they were close to securing had fallen through. Suddenly, they were scrambling to find another lender as interest rates climb higher.

loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.

Rising home prices and income inequality priced many out of the market, but for strivers who aspired to homeownership, the latest ruptures to the economy hit hard. The release of the new government’s sweeping plan for debt-funded tax cuts led to a big uptick in interest rates this week that roiled the mortgage market. Many homeowners are calculating their potential future mortgage payments with alarm, amid soaring energy and food prices and a general cost-of-living crisis.

Before they were informed they were no longer eligible, the family had been in the final stages of applying for a five-year fixed-rate mortgage on an apartment priced at £519,000, or around $576,000, in the leafy parish of Loughton, a town about 40 minutes north of London by train where the streets fill with students in the afternoon and the properties span from lower-end apartments to million-pound mansions.

according to the Financial Conduct Authority. And more than a third of all mortgages are on fixed rates that expire within the next two years, most likely exposing those borrowers to higher rates, too. By contrast, the vast majority of mortgages in the United States are locked in for 30-year fixed terms.

And the abrupt surge in interest rates could threaten to set off a housing market crisis, analysts at Oxford Economics wrote in a note on Friday, adding that if mortgage rates stayed at the levels now being offered, that would suggest that house prices were around 30 percent overvalued “based on the affordability of mortgage payment.”

“This just adds a significant further strain to finances in the order of hundreds of pounds a month,” said David Sturrock, a senior research economist at the Institute for Fiscal Studies, adding that the squeeze on household budgets will affect the broader economy.

Uncertainty and even panic was clear this week, with many homeowners seeking financial advice. Mortgage brokers said they were receiving a higher volume of inquiries than normal from people stressed about refinancing their loans.

“You can feel the fear in people’s voices,” said Caroline Opie, a mortgage broker working with Ms. Anne who said she had not seen this level of worry in a long time. One couple this week even called her the morning of their wedding, she said, to set an appointment to refinance their mortgage next week.

the war in Ukraine. “Something has got to give,” he said. “Prices are too high anyway.”

To save for the deposit, Mr. Szostek, 37, picked up construction shifts and cleaning jobs when restaurants closed during Covid-19 lockdowns. A £5,000 inheritance from Ms. Anne’s grandfather went into their deposit fund. At a 3.99 percent interest rate, the mortgage repayments were set to be about £2,200 a month.

“I wanted to feel at home for real,” said Ms. Anne, adding she would have been the first in her family to own a property. Mr. Szostek called it “a lifelong dream.”

On Wednesday night, that dream still seemed in reach: The mortgage dealer Ms. Opie had found another loan, which they rushed to apply for.

The higher interest rate — 4.6 percent — will mean their new monthly mortgage payment will be £2,400, the upper limit of what the Szostek family can afford. Still, they felt lucky to secure anything at all, hoping it will mean their promises to their children — of bigger bedrooms, more space, freedom to decorate how they like — will materialize.

They would wait to celebrate, Mr. Szostek said, until they had the keys in hand.

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How a Hospital Chain Used a Poor Neighborhood to Turn Huge Profits

RICHMOND, Va. — In late July, Norman Otey was rushed by ambulance to Richmond Community Hospital. The 63-year-old was doubled over in pain and babbling incoherently. Blood tests suggested septic shock, a grave emergency that required the resources and expertise of an intensive care unit.

But Richmond Community, a struggling hospital in a predominantly Black neighborhood, had closed its I.C.U. in 2017.

It took several hours for Mr. Otey to be transported to another hospital, according to his sister, Linda Jones-Smith. He deteriorated on the way there, and later died of sepsis. Two people who cared for Mr. Otey said the delay had most likely contributed to his death.

the hospital’s financial data.

More than half of all hospitals in the United States are set up as nonprofits, a designation that allows them to make money but avoid paying taxes. Although Bon Secours has taken a financial hit this year like many other hospital systems, the chain made nearly $1 billion in profit last year at its 50 hospitals in the United States and Ireland and was sitting on more than $9 billion in cash reserves. It avoids at least $440 million in federal, state and local taxes every year that it would otherwise have to pay, according to an analysis by the Lown Institute, a nonpartisan think tank.

In exchange for the tax breaks, the Internal Revenue Service requires nonprofit hospitals to provide a benefit to their communities. But an investigation by The New York Times found that many of the country’s largest nonprofit hospital systems have drifted far from their charitable roots. The hospitals operate like for-profit companies, fixating on revenue targets and expansions into affluent suburbs.

borrowing tricks from business consultants, have trained staff to squeeze payments from poor patients who should be eligible for free care.

John M. Starcher Jr., made about $6 million in 2020, according to the most recent tax filings.

“Our mission is clear — to extend the compassionate ministry of Jesus by improving the health and well-being of our communities and bring good help to those in need, especially people who are poor, dying and underserved,” the spokeswoman, Maureen Richmond, said. Bon Secours did not comment on Mr. Otey’s case.

In interviews, doctors, nurses and former executives said the hospital had been given short shrift, and pointed to a decade-old development deal with the city of Richmond as another example.

In 2012, the city agreed to lease land to Bon Secours at far below market value on the condition that the chain expand Richmond Community’s facilities. Instead, Bon Secours focused on building a luxury apartment and office complex. The hospital system waited a decade to build the promised medical offices next to Richmond Community, breaking ground only this year.

‘Glorified Emergency Room’

founded in 1907 by Black doctors who were not allowed to work at the white hospitals across town. In the 1930s, Dr. Jackson’s grandfather, Dr. Isaiah Jackson, mortgaged his house to help pay for an expansion of the hospital. His father, also a doctor, would take his children to the hospital’s fund-raising telethons.

Cassandra Newby-Alexander at Norfolk State University.

got its first supermarket.

according to research done by Virginia Commonwealth University. The public bus route to St. Mary’s, a large Bon Secours facility in the northwest part of the city, takes more than an hour. There is no public transportation from the East End to Memorial Regional, nine miles away.

“It became impossible for me to send people to the advanced heart valve clinic at St. Mary’s,” said Dr. Michael Kelly, a cardiologist who worked at Richmond Community until Bon Secours scaled back the specialty service in 2019. He said he had driven some patients to the clinic in his own car.

Richmond Community has the feel of an urgent-care clinic, with a small waiting room and a tan brick facade. The contrast with Bon Secours’s nearby hospitals is striking.

At the chain’s St. Francis Medical Center, an Italianate-style compound in a suburb 18 miles from Community, golf carts shuttle patients from the lobby entrance, past a marble fountain, to their cars.

after the section of the federal law that authorized it, allows hospitals to buy drugs from manufacturers at a discount — roughly half the average sales price. The hospitals are then allowed to charge patients’ insurers a much higher price for the same drugs.

The theory behind the law was that nonprofit hospitals would invest the savings in their communities. But the 340B program came with few rules. Hospitals did not have to disclose how much money they made from sales of the discounted drugs. And they were not required to use the revenues to help the underserved patients who qualified them for the program in the first place.

In 2019, more than 2,500 nonprofit and government-owned hospitals participated in the program, or more than half of all hospitals in the country, according to the independent Medicare Payment Advisory Commission.

in wealthier neighborhoods, where patients with generous private insurance could receive expensive drugs, but on paper make the clinics extensions of poor hospitals to take advantage of 340B.

to a price list that hospitals are required to publish. That is nearly $22,000 profit on a single vial. Adults need two vials per treatment course.

work has shown that hospitals participating in the 340B program have increasingly opened clinics in wealthier areas since the mid-2000s.

were unveiling a major economic deal that would bring $40 million to Richmond, add 200 jobs and keep the Washington team — now known as the Commanders — in the state for summer training.

The deal had three main parts. Bon Secours would get naming rights and help the team build a training camp and medical offices on a lot next to Richmond’s science museum.

The city would lease Bon Secours a prime piece of real estate that the chain had long coveted for $5,000 a year. The parcel was on the city’s west side, next to St. Mary’s, where Bon Secours wanted to build medical offices and a nursing school.

Finally, the nonprofit’s executives promised city leaders that they would build a 25,000-square-foot medical office building next to Richmond Community Hospital. Bon Secours also said it would hire 75 local workers and build a fitness center.

“It’s going to be a quick timetable, but I think we can accomplish it,” the mayor at the time, Dwight C. Jones, said at the news conference.

Today, physical therapy and doctors’ offices overlook the football field at the training center.

On the west side of Richmond, Bon Secours dropped its plans to build a nursing school. Instead, it worked with a real estate developer to build luxury apartments on the site, and delayed its plans to build medical offices. Residents at The Crest at Westhampton Commons, part of the $73 million project, can swim in a saltwater pool and work out on communal Peloton bicycles. On the ground floor, an upscale Mexican restaurant serves cucumber jalapeño margaritas and a Drybar offers salon blowouts.

have said they plan to house mental health, hospice and other services there.

a cardiologist and an expert on racial disparities in amputation, said many people in poor, nonwhite communities faced similar delays in getting the procedure. “I am not surprised by what’s transpired with this patient at all,” he said.

Because Ms. Scarborough does not drive, her nephew must take time off work every time she visits the vascular surgeon, whose office is 10 miles from her home. Richmond Community would have been a five-minute walk. Bon Secours did not comment on her case.

“They have good doctors over there,” Ms. Scarborough said of the neighborhood hospital. “But there does need to be more facilities and services over there for our community, for us.”

Susan C. Beachy contributed research.

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Eye Of Hurricane Fiona Nears Battered, Powerless Puerto Rico

U.S. President Joe Biden declared a state of emergency in the U.S. territory as the eye of the storm approached the island’s southwest corner.

Hurricane Fiona struck Puerto Rico’s southwest coast on Sunday as it unleashed landslides, knocked the power grid out and ripped up asphalt from roads and flung the pieces around.

Forecasters said the storm would cause massive flooding and threatened to dump “historic” levels of rain, with up to 30 inches possible in eastern and southern Puerto Rico.

“The damages that we are seeing are catastrophic,” said Gov. Pedro Pierluisi.

“I urge people to stay in their homes,” said William Miranda Torres, mayor of the northern town of Caguas, where at least one large landslide was reported, with water rushing down a big slab of broken asphalt and into a gully.

The storm also washed away a bridge in the central mountain town of Utuado that police say was installed by the National Guard after Hurricane Maria hit in 2017.

Fiona was centered 10 miles west of Mayaguez with maximum sustained winds of 85 mph, according to the U.S. National Hurricane Center. It was moving to the northwest at 9 mph.

Fiona struck on the anniversary of Hurricane Hugo, which hit Puerto Rico 33 years ago as a Category 3 storm.

The storm’s clouds covered the entire island and tropical storm-force winds extended as far as 140 miles from Fiona’s center.

U.S. President Joe Biden declared a state of emergency in the U.S. territory as the eye of the storm approached the island’s southwest corner.

Luma, the company that operates power transmission and distribution, said bad weather, including winds of 80 mph, had disrupted transmission lines, leading to “a blackout on all the island.”

“Current weather conditions are extremely dangerous and are hindering out capacity to evaluate the complete situation,” it said, adding that it could take several days to fully restore power.

Health centers were running on generators — and some of those had failed. Health Secretary Carlos Mellado said crews were working to repair generators as soon as possible at the Comprehensive Cancer Center.

Fiona hit just two days before the anniversary of Hurricane Maria, a devastating Category 4 storm that struck on Sept. 20, 2017, destroying the island’s power grid and causing nearly 3,000 deaths.

More than 3,000 homes still have only a blue tarp as a roof, and infrastructure remains weak.

“I think all of us Puerto Ricans who lived through Maria have that post-traumatic stress of, ‘What is going to happen, how long is it going to last and what needs might we face?'” said Danny Hernández, who works in the capital of San Juan but planned to weather the storm with his parents and family in the western town of Mayaguez.

He said the atmosphere was gloomy at the supermarket as he and others stocked up before the storm hit.

“After Maria, we all experienced scarcity to some extent,” he said.

The storm was forecast to pummel cities and towns along Puerto Rico’s southern coast that have not yet fully recovered from a string of strong earthquakes starting in late 2019.

Officials reported several road closures across the island as trees and small landslides blocked access.

More than 780 people with some 80 pets had sought shelter across the island by Saturday night, the majority of them in the southern coast.

Puerto Rico’s power grid was razed by Hurricane Maria and remains frail, with reconstruction starting only recently. Outages are a daily occurrence.

In the southwest town of El Combate, hotel co-owner Tomás Rivera said he was prepared but worried about the “enormous” amount of rain he expected. He noted that a nearby wildlife refuge was eerily quiet.

“There are thousands of birds here, and they are nowhere to be seen,” he said. “Even the birds have realized what is coming, and they’re preparing.”

Rivera said his employees brought bedridden family members to the hotel, where he has stocked up on diesel, gasoline, food, water and ice, given how slowly the government responded after Hurricane Maria.

“What we’ve done is prepared ourselves to depend as little as possible on the central government,” he said.

It’s a sentiment shared by 70-year-old Ana Córdova, who arrived Saturday at a shelter in the north coastal town of Loiza after buying loads of food and water.

“I don’t trust them,” she said, referring to the government. “I lost trust after what happened after Hurricane Maria.”

Puerto Rico’s governor, Pedro Pierluisi, activated the National Guard as the Atlantic hurricane season’s sixth named storm approached.

“What worries me most is the rain,” said forecaster Ernesto Morales with the National Weather Service in San Juan.

Fiona was predicted to drop 12 to 16 inches of rain over eastern and southern Puerto Rico, with as much as 25 inches in isolated spots. Morales noted that Hurricane Maria in 2017 had unleashed 40 inches.

Pierluisi announced Sunday that public schools and government agencies would remain closed on Monday.

Fiona was forecast to swipe the Dominican Republic on Monday and then northern Haiti and the Turks and Caicos Islands with the threat of heavy rain. It could threaten the far southern end of the Bahamas on Tuesday.

A hurricane warning was posted for the Dominican Republic’s eastern coast from Cabo Caucedo to Cabo Frances Viejo.

Fiona previously battered the eastern Caribbean, killing one man in the French territory of Guadeloupe when floods washed his home away, officials said. The storm also damaged roads, uprooted trees and destroyed at least one bridge.

St. Kitts and Nevis also reported flooding and downed trees, but announced its international airport would reopen on Sunday afternoon. Dozens of customers were still without power or water, according to the Caribbean Disaster Emergency Management Agency.

In the eastern Pacific, Tropical Storm Madeline was forecast to cause heavy rains and flooding across parts of southwestern Mexico. The storm was centered about 155 miles south-southwest of Cabo Corrientes Sunday morning, with maximum sustained winds of 45 mph.

Additional reporting by The Associated Press.

: newsy.com

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Hurricane Fiona Rips Through Powerless Puerto Rico