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Friday Alert
Friday, April 11, 2008
(Alliance for Retired Americans)
Tax Filing Deadline
Has Added Significance for Retirees This
Year
Tuesday, April 15th is the
regular deadline for filing taxes, and the date
holds special implications for seniors in
2008. Up to 20 million Americans who rely
primarily on Social Security income qualify for
an economic stimulus rebate check from the
federal government. Even seniors who do
not earn income through current employment can
qualify for a stimulus check, if their Social
Security benefits, Veterans Affairs (VA)
benefits, and railroad retirement benefits
totaled at least $3,000 in 2007. In most
cases, retirees will receive an economic
stimulus check ranging from $300 to $600.
Seniors need to file a 2007 federal tax return
on IRS Form 1040 or 1040A (short form) to
receive the check. Seniors must file a
2007 tax return even if their income is
normally low enough that they were not required
to file in previous years. Those filing
later than April 15, with or without a
tax-filing extension, may delay receipt of the
rebate check. Those who qualify for a
stimulus check will receive one by the end of
2008, as long as they file by October 15, 2008
- but no rebate checks will be issued after
2008. “For years, Alliance members have
been instrumental in spreading the word to
fellow retirees about key pocketbook issues,”
said George J.
Kourpias, President of the
Alliance. “Please keep that up by telling
your friends and neighbors about filing a tax
return to get the stimulus
rebate.”
Embarq Takes Aim at Current Retirees; 3M
Corp. Targets Future Retirees
S&P 500 firm Embarq Corp.,
headquartered in Overland Park, Kansas,
recently joined the list of firms that have
taken away retiree benefits. Embarq, with
approximately 18,000 employees in 18 states,
started as the local telephone unit of Sprint
Nextel Corp. and has been on its own since
spinning off in 2006. As of January 1,
2008, the company is no longer offering Medical
coverage for Medicare-eligible retirees and
dependents, nor is it providing a monthly
subsidy for Medicare premiums. Ten former
telephone company employees have filed a
class-action lawsuit seeking to have the
benefits restored. Last week, St. Paul,
Minnesota-based technological company 3M Corp.
announced that it is no longer offering new
workers its defined-benefit pension programs,
which provide a set benefit each month to
retired employees. Other corporate giants
that in recent years have announced phase-outs
of defined benefit plans include
Hewlett-Packard Co., IBM Corp., and
Lockheed-Martin Corp. “An injury to one retiree
is an injury to all,” said Ruben Burks,
Secretary-Treasurer of the Alliance. “It
is unfair to take away the benefits for
retirees that were earned and paid for while
they were active workers.”
Legislation
Introduced to Block Cuts in Medicaid
Services
On Wednesday, the House
Energy and Commerce Subcommittee on Health
unanimously passed a bill (H.R. 5613) to
postpone seven new Medicaid rules proposed by
the Bush administration. The rules would
have shifted billions of dollars in costs from
the federal government to the states and
reduced health care for poor nursing home
residents and others receiving aid.
Introduced by committee Chairman John D.
Dingell (D-MI), the legislation blocks
regulations criticized as being “overly broad”
and limiting federal reimbursement for such
services as doctor training, some types of
rehabilitation, and outpatient care. The
bill also provides the Department of Health and
Human Services an additional $25 million per
year to combat fraud and abuse in the Medicaid
system, an effort aimed at preventing a
Presidential veto. Similar legislation
(S. 2819) to block the rules has been
introduced in the Senate, sponsored by Sens.
Edward M.
Kennedy (D-MA), John D. Rockefeller
IV Jr. (D-WV), and Olympia J.
Snowe (R-ME). Also on Wednesday,
Director of the Center for Medicaid and State
Operations and designer of the new regulations
Dennis
Smith announced he will leave his
position some time this month. “With the
economy slowing, more seniors than ever will be
relying on Medicaid for basic services,” said
Edward
Coyle, Executive Director of the
Alliance. “These programs are vital to
the health of retirees, and imprecise rules
have the unintended consequence of cutting
legitimate care.”
And the Winner
is…
The Pennsylvania Coalition of
Labor Union Women has named Pennsylvania
Alliance President Jean Friday “Labor Woman of the
Year.” At a dinner in Pittsburgh on
Monday, President Friday was honored for her
outstanding commitment to protecting the rights
of active and retired workers. A
proclamation recognizing the honor was also
read into the record of the Allegheny County
Council. “We offer our congratulations to
Jean, and are thrilled the Pennsylvania
Coalition of Labor Union Women has recognized
the enormous contribution she has made to the
Alliance and to retirees across the country,”
said Edward
Coyle.
Northeastern Regional Meeting in
Philadelphia Begins This
Thursday
Starting in just six days –
April 17-18 – in Philadelphia, PA, the Alliance
will hold its second regional meeting of
2008. The Northeastern Regional Meeting
will provide a forum for activists to work
together and prepare for November’s
Presidential election. Attendees will
learn how to get seniors and other retirees
registered and voting, increase grassroots
advocacy, and educate federal, state and local
legislators on issues such as Medicare, Social
Security, prescription drugs, and retirement
security. For copies of the official
registration form for any of the three
remaining regional meetings, call
1-888-373-6497, email Joni Jones at jjones@retiredamericans.org,
or visit our website at www.retiredamericans.org.
Locations and dates for the last two meetings
are: Midwestern Regional Conference,
April 28-29, 2008 in St. Louis, MO; and
Southern Regional Conference, June 4-5, 2008 in
Orlando, FL. The Western Regional meeting
took place in March.
Did You
Know…
On Monday, the federal
government said it would raise payments next
year to insurers that provide health care
coverage to seniors through Medicare Advantage
(MA) programs by 3.6%, a slight increase from
last year's boost (Houston Chronicle). The
Alliance has been fighting against subsidy
overpayments, because insurance companies
offering MA plans already enjoy, on average,
reimbursements 13% higher than those of
traditional Medicare.
Editor’s Note: Due
to the Northeastern Regional Meeting, the next
Friday
Alert will be published on Monday, April
21, 2008.