In a Financial Storm, What's Safe?

In a declining investment market facing further turmoil, the article posted on Bankaholic by J. Wu entitled "6 Safe Places to Invest Your Money" seemed quite appropriate. This article was posted on September 11, 2008 -- before Lehman Brothers filed for bankruptcy (PDF, 2 pages), and before Merrill Lynch submitted to purchase by Bank of America, both announced on September 15th in press releases.

I reproduce this brief article with permission granted in an email message from Helen Anderson. Of course, the article below provides a generic overview, and does not offer financial advice, either by them, the author, or me.

6 Safe Places to Invest Your Money

With the stock market in such a volatile state these days, it’s tempting to dig a hole in your backyard and bury your savings. This way you’d at least know where your money is at all times and how it’s performing for you. Luckily, there are still some secure places you can invest your money and you won’t have to be afraid of your financial future.

Here’s a list of some places you should consider investing your money with very minimal risk:

1. Open money market / high interest savings accounts.

Money market accounts are great ways to invest money for the short-term. If you need a quick turnaround these are stable ways to secure a return on your investment. The current average yield ranges from 0.50% to high as 4.00%. The bank will reinvest your money into short-term securities with that solid interest rate as further incentive. These accounts are liquid and usually FDIC insured. The only drawback is that some money market accounts may require a minimum balance.

2. Treasuries are safe.

T-bills are issued by the U.S. government and are considered very low-risk investments. They are fully backed by the government. You can choose the maturity date when you’re investment will be fully realized. Short-term T-bills are the safest investments with maturity dates of 13 or 26 weeks.

3.Certificates of Deposit.

CDs are available through your bank or broker and are also very safe investments. They have set maturity dates and you’re locked into your interest rate at the time of your investment. If you withdraw your funds early then you incur a penalty that can be costly.

4. 401k Plans.

If your employer offers a 401k plan then you’d be wise to invest in it. This is your money that you put in on a pre-tax basis. Within your plan you can choose what funds you want to invest in. Whether you’re willing to assume risk or need stable funds you’ll find them in your overall plan.

5. Mutual funds. There are many mutual funds that are tailored for those who have little appetite for risk. The mutual fund is monitored by a fund manager that invests your money in a number of stocks or other mutual funds. One drawback is that you need to pay administrative fees for the management of your fund.

6. Savings bonds. These bonds will offer a low return but also are virtually risk-free, which is a nice thought in this financial climate.

For another viewpoint, see "Four Really Safe Investments" (09/12/08) by Marc Courtenay posted by iStockAnalyst, which recommends treasury securities, collectibles, postage stamps, and "personal happiness."

One of the comments to Mr. Wu's article raised an important limitation on the safety of bank deposits, however: "The six ideas are good. Just watch your FDIC top limits…. I’m a former IndyMac customer who didn’t and have 28K not insured…."

That comment is relevant when you review the list of failed banks since 2000, including eleven in 2008.

Consider the article "Trick to Getting FDIC Insured Over $100K" (07/12/08) also by J. Wu, posted on Bankaholic, and explore the issue of FDIC coverage at the website of the Federal Deposit Insurance Corporation, including its posted advisories "Your Insured Deposits" and "Is My Account Fully Insured?"

Update: 09/17/08:

Since Monday, the financial news this week only got worse.

National Public Radio broadcast and posted many stories, including "Are Your Investments Safe" (09/17/08) by Wendy Kaufman:

Nervous investors had a lot to worry about this week, with financial services companies declaring bankruptcy, hoisting for-sale signs and calling for federal assistance. The stock market fell steeply in response.

How can investors protect their nest eggs? [See: Q&A: Shielding Your Nest Egg From Financial Woes (09/17/08), by Joshua Brockman posted by NPR]

Other analysis, accompanied by good general advice, was offered in NPR's posted article "History's Advice During A Panic? Don't Panic" (09/17/08) by Linton Weeks:

With the collapse of Lehman Brothers, the sale of Merrill Lynch and the bailout of insurance giant AIG, long-standing financial fortresses of America are imperiled and the stock market is like a Six Flags roller coaster.

In the midst of such upheaval, are there lessons to be learned from history? * * *

"This financial crisis is a serious one, the most serious since the 1930s," says Richard Sylla, who teaches the history of financial institutions and markets at New York University.

"But in many respects it fits the typical pattern of financial crises going back three or four centuries. Such crises seem disconcerting, even terrible to many people when they are going on, but they do come to an end and life goes on as before." * * *

At the end of his analysis, considering history, psychology, politics, and economics, what is his conclusion about weathering financial storms?

History teaches us to remain calm, Gordon says.

"Speculators can be badly burned" by dramatic up-and-down days, he says. "But investors — those in the market for the long term — won't be if they hang tight."

In a panic, he adds, don't panic.

Update: 09/18/08:

The Wall Street Journal posted "Your Cash: How Safe Is Safe?" by Jane J. Kim, who addressed FDIC, PODs, CDARS, and CDs in the search by investors for safe havens during a financial crisis.

As the financial system reels from one disaster after another, financial planners, estate planners and bank officials say they've been receiving calls from panicked savers concerned about the safety of their deposits. * * *

Federal "Elder Justice" Acts Appear Elusive

On September 11, 2008, in an update entitled "Senate Finance Committee Approves Two Bills To Help Prevent Neglect, Abuse of Elderly Patients", the Kaiser Health Daily Policy Report stated: "The Senate Finance Committee on Wednesday by voice vote approved two bills that seek to prevent neglect and abuse of elderly patients, CQ Today reports."

One bill (S 1070), sponsored by Sen. Orrin Hatch (R-Utah), would authorize $777 million to establish state and local training and assistance programs for long-term care employees. In addition, the legislation would establish a database used to identify and track elder abuse cases. * * * A companion bill (HR 1783) awaits a vote in the House.

The second bill (S 1577), sponsored by Sen. Herb Kohl (D-Wis.), would seek to establish a nationwide system of background checks to screen potential long-term care employees for a history of abuse or a violent criminal record. The legislation, which would expand a seven-state pilot program established under the 2003 Medicare law, would provide as much as $160 million in grants over three years to states that seek to participate in the program. * * *

The posting noted that, according to CQ Today (Mattingly, 09/11/08), the Senate "has a limited number of days to try to reach agreement with the House on the bills, which groups representing America's elderly are pushing as a major priority."

AARP supports the federal legislation, as described in its Bulletin Today in the article "What the Elder Justice Act Would Do" (07/11/07), by Elizabeth N. Brown. The National Council on Aging also supports it, as explained in its Issue Briefs: Elder Justice Act – S. 1070 and H.R. 1783.

Indeed, the Leadership Council of Aging Organizations, "a coalition of over 56 national not-for-profit organizations concerned with the well-being of American’s 87 million people over age 50," forwarded a letter to the co-chairs of the Senate Finance Committee urging immediate action. See: Letter in Support of the Elder Justice Act and the Patient Safety and Abuse Prevention Act of 2007 (PDF, 2 pages).

We are writing to express our support for the Elder Justice Act and the Patient Safety and Abuse Prevention Act of 2007 and to urge you to mark-up this landmark legislation and move it to the Senate floor as soon as possible when the Senate returns from its state work period.

With few legislative days remaining in the 110th Congress, it would be a tragedy to allow any more older Americans to suffer the pain of abuse, neglect, and exploitation because Congress failed to act. * * *

But, in the past, facing similar opportunities, Congress failed to act on such bills.

A federal "Elder Justice Act" was proposed in each of the past three Congressional sessions -- as the Elder Justice Act of 2002 (S. 2933), the EJA of 2004 (S. 333), and the EJA of 2006 (S. 2010). The Senate Finance Committee had approved the last two versions, too.

But no enactment occurred.

For evidence of past failed attempts, read the few "News" updates posted by the Elder Justice Coalition since March, 2004.

As to the status of the current legislation in this Congressional Session, see: Elder Justice Act Update presentation (06/24/08), by Bob Blancato, National Coordinator, of the Elder Justice Coalition.

The House version of an Elder Justice Act, H.R.1783, introduced on March 29, 2007, would amend the Social Security Act to enhance the social security of the Nation by ensuring adequate public-private infrastructure and to resolve to prevent, detect, treat, intervene in, and prosecute elder abuse, neglect, and exploitation, and for other purposes.

It is also noteworthy that, in this Congressional session, Pennsylvania Representative Joe Sestak (7th District, Delaware Co.) sponsored H.R. 5352, The Elder Abuse Victims Act of 2008, which was reported favorably out of the House Judiciary Committee in June, 2008.

He promoted it in the Press Release "Congressman Joe Sestak Testifies on Elder Abuse" (04/23/08), which noted that the "[f]irst hearing on senior abuse in 17 years in the House of Representatives addresses Congressman Sestak’s Elder Abuse Victims Act."

"With 2 million senior citizens, the third largest elderly population in the country, this legislation is particularly important to the Commonwealth of Pennsylvania, my home state."
* * *
"[A]s as Hubert Humphrey once said, the moral test of a government is how it treats the elderly, those in the twilight of life."

-- Rep. Joe Sestak, in House Testimony on April 23, 2008

Religious Views on Organ Donation

The September, 2008 issue of The Philadelphia Jewish Voice posted an article by Gabrielle Loeb entitled Judaism’s perspectives on Organ Donation After Death. Its publication was highlighted by Professor Gerry Beyer on the Wills, Trusts & Estates Prof Blog on September 10, 2008.

Loeb's article is quite detailed. He introduces the subject as follows:

Although many Jews believe that Jewish law forbids organ donation, most rabbinical authorities not only permit it, but also encourage it.

In 1990, the Rabbinical Assembly of America approved a resolution to “encourage all Jews to become enrolled as organ and tissue donors by signing and carrying cards or driver’s licenses attesting to their commitment of such organs and tissues upon their deaths to those in need.” * * *

After investigating issues regarding already deceased donors, including Kavod Ha-met (honor of the dead) Nivul Ha-met (disgrace of the dead), and the definition of death, and raising newer concerns due to medical advancements that can prolong life, he concludes with this advice to Jews:

There are numerous reasons for Jews to become organ donors; most reasons against that choice are simply misconceptions. Jews should consult their own rabbi to discuss the issue of organ donation.

Most rabbis agree, however, that it is our responsibility as Jews to honor God’s name and to save lives by giving the gift of life even after are lives have terminated through the act of organ donation.

As Mishnah Sanhedrin 4:6 says, “Whoever saves one life, it is as if he saved the entire world.”

For a thoughtful, researched Christian view of issues involving organ donation, see: A Christian's Response to Organ Donation and Transplantation, by Brad Harrub, Ph.D., posted by Apologetics Press, which asks "Can faithful Christians take advantage of, and support, organ donation and/or transplants?"

[G]iven the successful heart, pancreas, pancreas islet cell, intestine, lung, liver, and heart-lung transplants[,] the question arises, “Is this new medical technology in compliance with God’s will?” What should Christians know about organ transplants, and can we support this ever-growing practice? * * *

Wikipedia, under its heading Organ Donation and its subheading Religious Scruples, summarizes various religious views on organ donation:

Most religions are in favor of organ donation as acts of charity and as a means of saving a life. Some impose certain restrictions. For example, Jehovah's Witnesses require that organs be drained of any blood, and Muslims require that the donor have provided written consent in advance.

A few, such as certain branches of Orthodox Judaism consider it obligatory.

However, a few groups disfavor organ transplantation or donation; notably, these include Shinto and those who follow the folk customs of the Gypsies. * * *

This summary appears drawn from a short-form analysis of religious beliefs towards organ donation, with a lineage dating back to 1979, now widely posted on the Internet.

That analysis attempted to answer a basic question, answered differently for individual donors with differing religious viewpoints, who consider organ donation:

A common question that arises when people are considering organ and tissue donation is, "Does my religion approve of organ donation and transplantation?"

Surveys find that few individuals are aware of their own religion's doctrines regarding organ and tissue donation.

In fact, most major religions encourage organ and tissue donation, and many of them at the very least allow their followers to make a personal decision in this regard.

Such materials were posted in chart form by the U.S. Department of Health and Human Services, Health Resources & Service Administration on its webpage, Religious Views on Donation.

The government website's version of the materials was adapted from Organ and Tissue Donation: A Reference Guide for Clergy, 1995." For a more comprehensive guide incorporating those principles, see: Organ and Tissue Donation Reference Guide (2004; PDF, 46 pages), prepared & posted by the Wisconsin Donor Network.

Versions of that material summarizing religious viewpoints on organ donation were posted by many reputable organizations, including:

• American Red Cross' Tissue Donation -- Statements from Various Religions
  
• Gift of a Lifetime's Religion and Organ and Tissue Donation
• National Kidney Foundation's What Does My Religion Think of Donation?"
• New York Organ Donor Network's Religious Viewpoints
• One Legacy's Religious Views of Donation

In Pennsylvania, the Donate Life program, co-sponsored by the PA Department of Health, offers resources to explain and encourage organ donation. The Health Department also posts Organ and Tissue Donation Links for education and support. See also: PA EE&F Law Blog posting Organ Donation in Pennsylvania (06/14/07).

The PA Department of Transportation now provides an online organ donation registration for Pennsylvania residents who desire to make such a designation. The effect of, and process for, such a designation is explained by Penn DOT on its webpage entitled Organ Donation.

According to an article entitled Producing Organ Donors, by David H. Howard, published in the Journal of Economic Perspectives (Vol. 21, No. 3, Summer 2007, pages 25–36; PDF), the problem now is not the technology, but is the availability of transplantable organs:

"Organ transplantation is one of the greatest technological achievements of modern medicine, but the ability of patients to benefit from transplantation is limited by shortages of transplantable organs. * * *

As a result of the growth in the demand for organs, many observers have questioned whether the current system is capable of providing enough transplantable organs.

Transplant physicians and policymakers are seriously debating proposals to pay donors and their families and to change the legal regime governing the process of obtaining consent to donation. * * *

According to OrganDonor.gov from January to June of this year, 13,812 organ transplants occurred, due to the selflessness of 6,987 donors and their families.

Yet, as of September 8, 2008, the waiting list of organ transfer candidates remains at 99,435 hopeful recipients.

"Brain Fitness" for Seniors

On September 8, 2008, a Press Release entitled "Seniors Housing Communities Embrace Brain Fitness Centers" announced that the American Seniors Housing Association, in conjunction with SharpBrains, issued a briefing that "describes the use of computerized brain fitness tools being offered to senior housing residents as part of comprehensive wellness initiatives."

"Brain Fitness" is described by Wikipedia as a new movement in science:

Brain fitness grew out of the study of neuropsychology and is the science of maintaining and training cognitive abilities. Its training principles are based on concepts derived from phenomena contributing to neuroplasticity and neurogenesis.

Cognitive abilities like attention, memory, visual/spatial processing, auditory processes and language, motor coordination, and executive functions like planning and problem solving diminish over time unless they are used regularly.

A major hypothesis is that improvement in cognitive abilities through brain exercise represents brain fitness, in an analogy with how physical exercise produces physical fitness. * * * Brain fitness typically seeks to improve attention, memory, thinking, and stress management.

The study of "brain fitness" quickly resulted in devices and programs intended to improve brain functioning, particularly for seniors anticipating or experiencing decline.

Jack LaLanne, the American fitness, exercise & nutritional expert, soon to be 94, is a proponent of brain exercise along with physical exercise, to maintain well-being, according to a Washington Times article, "Brain fitness on LaLanne's mind" (07/09/08), by Karen Goldberg Goff:

"Dying is easy," Mr. LaLanne says in a phone interview from his California office. "Living is an athletic event. Inactivity is a killer. A little exercise pays off such great dividends." * * *

His latest venture is as a spokesman for [m]Power, a cognitive exercise media system. The system, which is being used in more than 100 senior living centers and is available for home use, uses video and sound clips, trivia games and brain teasers to give senior citizens' brains a workout. * * *

Dan Michel, chief executive of Dakim, the company that manufactures the device, says a mental workout -- like the physical workout Mr. LaLanne has been promoting all these years -- can improve cognitive functioning and ward off signs of dementia.

"Scientists now believe that the brain is plastic until the end," he says. "As aging occurs, we lose neurons or synapses over time. If we are constantly learning new things, we create new neurons and create a cognitive reserve. Our system works on long-term memory, short-term memory, language, spatial relations and critical thinking. It constantly self-adjusts the level of difficulty to stretch the mind." * * *

Brain Fitness is now a movement, particularly among senior citizens, soon to be joined by aging "baby boomers."

The trend was highlighted in a New York Times article entitled "As Minds Age, What's Next? Brain Calisthenics" (12/27/06) by Pam Belluck. She reported that "across the country, brain health programs are springing up, offering the possibility of a cognitive fountain of youth. See also: "Beating forgetfulness and boosting the brain" (07/25/07) by Kristen Gerencher, posted by MarketWatch; and "Calisthenics for the Older Mind, on the Home Computer" (08/26/07) by Christine Larsen, also posted by The New York Times, which considered the skepticism of some research scientists.

Still, new high-technology products & programs now fill these "brain gyms." Nintendo, the world's biggest maker of portable game players, sold 21.5 million copies of its Brain Age and Brain Age 2 games in the past two years, according to "Dementia-Dreading Baby Boomers Spur Race to Invent Brain Games" (04/04/08) by Rob Waters, posted by Bloomberg.

He reported about such a "brain gym" that challenges senior citizens:

The software was created by closely held Posit Science Corp. in San Francisco.

It is one of about 20 companies, including Nintendo Co., pitching brain games to the elderly and baby boomers to delay or blunt the onset of dementia.

The market will surge to $2 billion by 2015 from $225 million last year, says Alvaro Fernandez, co-founder of SharpBrains, a San Francisco consulting company. * * *

Brain-training programs for the elderly "will become as common as bingo,'' says SharpBrains' Fernandez, 35, whose company promotes science-based cognitive training. "Over 400 senior residential facilities have brain-fitness centers today.'' * * *

See also: 'Brain fitness' Market for aids to stall 'senior moments' booms with aging boomers (06/20/08), by Megan K. Scott, of Associated Press, who also quoted Mr. Fernandez.

The recent Press Release offered new evidence about this movement, but in the setting of senior housing centers:

This is the very first publication in the field of brain fitness to address specific considerations related to seniors housing, expanding on our general Market Report released earlier this year.

It is very conceivable that the early and enthusiastic adoption of cognitive fitness, supported by the solid measurement of outcomes reported in the Brief, will help to transform the way in which the general population perceives seniors housing. * * *

I wondered about the specifics of the report mentioned in the Press Release, so I sent Mr. Fernandez an email message. He replied quickly:

The target audience for the special report is execs at seniors housing communities, not consumers.

Consumers can find many free resources in our website, more relevant to them than the content of the special report.

Have you seen this series of interviews with scientists and this Program Evaluation Checklist or this overview article on brain health trends? * * *

Although skepticism remains as to the long-term effectiveness of current brain training tools, I am impressed by the growth of this recent movement towards "brain fitness" -- a phenomena suggested by science that quickly materialized into marketed products, now being placed into communal housing for seniors.

Proposed Fed Regs on Retirement Plans

On August 21, 2008, the U.S. Department of Labor issued a Press Release entitled "U.S. Labor Department proposes rules on investment advice exemption for 401(k) plans and IRAs" that announced publication the next day of proposed regulations to govern rendering of investment advice for 401(k) and IRA plans.

The U.S. Department of Labor today announced publication of two proposed rules under the Pension Protection Act (PPA) to make investment advice more accessible for millions of Americans in 401(k) type plans and individual retirement accounts (IRAs). * * *

"These proposals would give workers greater access to investment advice so that they are better equipped to manage and monitor their 401(k) plans and Individual Retirement Accounts," said U.S. Secretary of Labor Elaine L. Chao.

The PPA amended the Employee Retirement Income Security Act (ERISA) by adding a new prohibited transaction exemption that allows greater flexibility for participants of 401(k) plans and IRAs to obtain investment advice.

One of the ways in which investment advice may be given under the exemption is through the use of a computer model certified as unbiased, the other is through an adviser compensated on a "level-fee" basis.

Several other requirements also must be satisfied, including disclosure of fees the adviser is to receive. * * *

The proposed regulations were published in the Federal Register on August 22, 2008 (Volume 73, Number 164) by the Employee Benefits Security Administration as document 49896–49923 [E8–19272] entitled Investment Advice; Participants and Beneficiaries (also available in PDF format as amendments to 29 CFR Parts 2550, 29 pages).

This is the "Summary" of the proposed regulations, as contained in the published notice:

This document contains proposed regulations implementing the provisions of the statutory exemption set forth in sections 408(b)(14) and 408(g) of the Employee Retirement Income Security Act, as amended (ERISA or the Act), and parallel provisions in the Internal Revenue Code of 1986, as amended (Code), relating to the provision of investment advice described in the Act by a fiduciary adviser to participants and beneficiaries in participant-directed individual account plans, such as 401(k) plans, and beneficiaries of individual retirement accounts (and certain similar plans).

Section 408(b)(14) provides an exemption from certain prohibited transaction provisions in ERISA with respect to the provision of investment advice, the investment transaction entered into pursuant to the advice, and the direct or indirect receipt of fees or other compensation by the fiduciary adviser or an affiliate in connection with the provision of advice or the transaction pursuant to the advice.

Section 408(g) describes the conditions under which the investment advice related transactions are exempt.

Upon adoption, the regulations will affect sponsors, fiduciaries, participants and beneficiaries of participant-directed individual account plans, as well as providers of investment and investment advice-related services to such plans.

The Press Release solicited comments on the proposed regulations, which are due by October 6, 2008:

Written comments on the investment advice proposals should be addressed to the Office of Regulations and Interpretation, Employee Benefits Security Administration, Room N-5665, U. S. Department of Labor, 200 Constitution Ave., NW, Washington, D.C. 20210, Attn: Investment Advice Regulations.

The public also may submit comments electronically by email to e-ori@dol.gov, or through the federal e-rulemaking portal at www.regulations.gov.

On September 8, 2008, Blaine F. Aikin, the President and CEO of Fiduciary 360 LP, in Sewickley, PA, expressed concerns about the proposed regulations in an article entitled "Can brokers be fiduciaries?" posted on Investment News.

He evaluated the new DOL guidelines as "a problematic development."

Judging by newly proposed regulations on investment advice, it looks as if the Department of Labor is trying hard to engineer a sharp turn from the course established by Congress. * * *

[T]he DOL simultaneously proposed a new class exemption to allow commission-based registered representatives to become fiduciary advisers and give advice to participants and beneficiaries of participant-directed retirement plans and individual retirement accounts.

The new class exemption is a very big change that the DOL contended will "increase the variety of investment advice arrangements that are available and potentially lower the cost and promote the marketing of such arrangements, to the benefit of participants." * * *

The DOL has seized on the opportunity created by the act to expand on the idea that most investors need advice. It chose to do so in two ways.

First, it would extend the regulations to address advice given to IRA account holders.

Second, it proposed to allow conflicted financial services reps to give advice in competition with the fiduciary advisers contemplated under the act. * * *

Aikin noted that the first component is consistent with Congressional intention, but the second is not. He concluded: "Whether investors will in fact benefit hinges upon whether all fiduciary advisers will be able to adapt to the new rules, and the fiduciary standard of care they are designed to promote, quickly and effectively."

For Aikin's more generic recommendations regarding a fiduciary's conduct in an investment setting, see: "A warning light for fiduciaries -- What you can do about the increasing risk of litigation from disgruntled investor" (06/09/08).

"A nickel isn't worth a dime today."

-- Yogi Berra, quoted in "Yogi Berra's 7 secrets to building wealth" (01/02/08) by Karen Datko posted on MSN Money

Comments Due on PA's Assisted Living Regs

On September 7, 2008, The Philadelphia Inquirer published a commentary, entitled "Proposed assisted-living rules fall woefully short" by Alissa Halperin, Esq., of the Pennsylvania Health Law Project, regarding pending regulatory rules proposed by the Pennsylvania Department of Public Welfare to govern future operations of assisted-living facilities in this state.

She concluded: "The proposed regulations do represent a step in the right direction. But they must be beefed up to include stronger consumer protections. * * * Thankfully, the draft regulations are still in a formative stage and the public has an opportunity to give its input now."

Her comments echo many points made in a Press Release, issued in August, 2008 by the Pennsylvania Assisted Living Consumer Alliance entitled "New Assisted Living Regulations Do Little to Protect Consumers," which "asks the public to make their voices heard on fundamental rights."

For background on the issuance of the proposed regulations under Act 56 of 2007, see PA EE&F Law Blog postings "PA "Assisted Living Residence" Regs Proposed" (07/31/08) and "PA's Act No. 56 on Assisted Living Facilities" (07/26/07). See also: "Long-Term Care in PA: Assisted Living Update" (11/12/07), posted by AARP.

Alissa Halperin, Esq. as Project Director of PALCA and as Senior Attorney & Deputy Director of Policy Advocacy at the PHLP, also created a PowerPoint presentation entitled "The Evolution of Assisted Living in Pennsylvania" that provides background and makes points about the proposed regulations. See also: "The Status of Assisted Living in Pennsylvania" (07/07; PDF, 11 pages) PowerPoint, by Dana Breslin, Esq. and Alissa Halperin, Esq., prepared for the Pennsylvania Bar Institute's Elder Law Institute.

Such differences in opinion as to the effectiveness of the proposed regulations was the subject of an article posted on September 6, 2008, by KYW News Radio (Philadelphia, PA) entitled "Pa.'s Assisted Living Facilities Will Get New Regulations" by Pat Loeb, who reported:

The Pennsylvania Department of Public Welfare is developing new requirements and regulations for assisted living facilities in the state. The new regulations are meant to protect residents, but consumer advocates think the regulations don't go far enough.

It's been eight years since World War II veteran William Neff died of abuse at an assisted living facility in Bucks County -- igniting an outcry for new regulations. But until now, assisted living has been licensed the same way as personal care homes.

Alissa Halperin of the Pa assisted living consumer alliance says the problem with the new regulations is they don't represent enough of a change. * * *

Spokesperson Stacy Witalec says the Department of Public Welfare is open to suggestions from Halperin and others: “We are hoping through the regulation process we can all come to the table to make sure these regulations meet the very unique needs of every resident we're hoping to serve.” * * *

Written comments about the proposed assisted living regulations can be delivered to the Department of Public Welfare, Division of Long Term Care Client Services, Attention: Gail Weidman, P. O. Box 2675, Harrisburg, PA 17105. Persons with a disability may use the AT&T Relay Service, (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).

The proposed regulations were released by DPW on August 9, 2008. Due to an extension, DPW will receive public comments until September 15, 2008.

Update: 09/11/08:

On September 10, 2008, PALCA submitted comments on the proposed assisted living regulations to the Department of Public Welfare and the Independent Regulatory Review Commission.

Update: 09/16/08:

PALCA's comments were noted in an article, "Proposed Assisted Living Regulations Would Allow Facilities to Rent Inaccessible Rooms to Persons Who Use Wheelchairs or Walkers" (09/15/08) posted by MarketWatch, which noted that the "[c]onsumer coalition calls for quality standards to protect Pennsylvania families from inadequate regulations."

The article also noted:

Accessibility is just one weakness in the draft regulations identified by PALCA. Other areas of concern include ensuring adequate staff and administrator training, access to one's own doctor, a responsive appeals' process and sufficient residents' rights.

The House Aging and Older Adult Services Committee will hear consumers' stories on Thursday, Sept. 18 at 9:30 a.m. in room 418 in the Main Capitol Building in Harrisburg.