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Medicare Showdown in U.S. Senate: Take Action Now

(Alliance for Retired Americans)

On April 12, the Senate Finance Committee voted 13-8 in favor of a bill, S. 3, removing the prohibition on Medicare negotiating price discounts with the pharmaceutical companies.  It would also force drug plan providers to reveal currently secret pricing data to government watchdogs.  Pressured by a multi-million dollar lobbying campaign, some Senators are planning a filibuster to block the bill when it reaches the Senate floor this week.  Additionally, the White House is threatening a veto.  In January, the U.S. House of Representatives passed legislation mandating Medicare price negotiations.  “This is the moment of truth for Senators and for President Bush: do they stand with seniors struggling to afford their drugs, or do they stand with the big drug companies who want to keep their sweetheart deal going,” said Alliance Executive Director Edward F. Coyle.  Alliance members are urged to call the U.S. Capitol beginning today at 1-877-331-1223 to be connected to their Senators and voice their support for the bill.  In addition, a pre-written letter on which members can simply click, then fill in their names and addresses and send electronically to their Senators will follow by e-mail later today.  That letter is available now at www.unionvoice.org/campaign/S3negotiation.

CEO Pay at the Big Drug Companies: It’s Enough to Make You Sick
So where does your prescription drug money go?  According to SEC data just released, a lot of it is going straight to the CEO.  The head of Wyeth took home $32.8 million in 2006.  A few others: Abbott Laboratories, $26.9 million; Pfizer, $19.4 million; and Baxter, $13.5 million.  2006 was also a very good year to be the CEO of an insurance company:  Prudential $25.7 million; Cigna, $21.0 million; and Aetna, $19.8 million.  “Is it any wonder why Americans pay the highest drug prices in the world?  These CEOs ought to be ashamed of themselves for profiting so handsomely off seniors who need their prescription drugs,” said Alliance president George J. Kourpias.  More information can be found at the AFL-CIO’s new website, www.paywatch.org.

Patient Illiteracy Can Kill
Miscommunications between patients and health care providers are increasing the chances that people who need medical care will be hurt or killed in the process, according to a report from a health care accreditation group in USA Today recently.  While cultural and language barriers pose problems for patient-doctor communication, poor general literacy skills can be just as great an impediment, according to The Joint Commission, which accredits nearly 15,000 U.S. health care organizations and programs.  The report’s recommendations include encouraging a culture of easy-to-understand communication.  "When literacy collides with health care, the issue of health literacy – defined as the degree to which individuals have the capacity to obtain, process, and understand basic health information and services needed to make appropriate health decisions -- begins to cast a long patient safety shadow," the Joint Commission report states.  Those with literacy issues come from all walks of life; however, educational level, nativity, socio-economic status, and elderly age are all potential indices of low health literacy.  The report, noting that medical information is often filled with jargon, said that even those who are most proficient at using text and numbers might be challenged when feeling sick and vulnerable.

Coming Soon: More Affordable Biotech Drugs?
According to a New York Times piece earlier this month, senior members of Congress from both parties are working “feverishly” on legislation that could give consumers access to lower-cost copies of biotechnology drugs that now cost tens or hundreds of thousands of dollars a year.  Consumer groups, employers and insurers are lobbying for the bill, which they see as a way to hold down health costs, but the proposal faces opposition from the pharmaceutical industry.  Biotech medicines are the fastest-growing category of health spending, with sales of $40 billion last year, up 20 percent from 2005, according to IMS Health, a market research company.  More than 400 biotech products are in the pipeline, for more than 100 diseases, including cancer, AIDS, diabetes and Alzheimer's.  Conventional drugs are synthesized by putting atoms together from basic chemicals and are often in pill form.  Biotech drugs, also known as biologic products, “are typically proteins made by modifying the DNA of bacteria, yeast or mammal cells, and they are often given by injection or infusion.”  Rep. Henry Waxman (D-CA) is pushing a House bill that would authorize the Food and Drug Administration to approve safe, lower-cost versions of biotechnology drugs.  Senators, meanwhile, are seeking a balance that is more protective of brand-name drug makers.  “Even a moderate drop in price would save seniors hundreds of millions of dollars nationally,” said Ruben Burks, Secretary-Treasurer of the Alliance.

Affordable Health Insurance for Alliance Members
Please remember that affordable insurance to supplement Medicare is available to Alliance members through the ARA Retiree Health Plan.  The Retiree Health Plan Annual Open Enrollment period is underway now through June 30, 2007!  During this period, Medicare-eligible retirees and their spouses are guaranteed acceptance with no waiting periods regardless of pre-existing health conditions.  Visit www.araretireehealth.com for further details or call 1-866-298-9117 to receive your Free Retiree Health Information Kit and your open enrollment application. No agent will call you - everything is handled through the mail.

Moving Multiple Times Before Settling on a Place to Retire Not Uncommon
There used to be two kinds of people in retirement -- those who stayed home and those who did not, according to a recent article in the Wall Street Journal.  Now, there's a third category: nomads who relocate when they retire, then pick up stakes a few years later and move again and again.  This “wanderlust,” may stem from the growing prevalence of decades-long retirements; a higher comfort level with moving among corporate employees who spent their careers being transferred from city to city; an increasing number of retirees with the wealth to move around; and the lure of a better place to live.  Some downsides to the multiple moves included unforeseen politics with the new homeowners association, difficult drives to get to a hospital, and not having enough zoning protections in place in the new locale to slow future growth.